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California's Bitwise furloughs entire staff, how that affects Toledo unclear

The California tech incubator and job-training company has been preparing to open an innovation center in Toledo's Jefferson Center building.

TOLEDO, Ohio — Bitwise, the California tech incubator and job-training company planning a workforce development and innovation center in Toledo, has furloughed its entire workforce, according to media reports.

News organizations, including the San Joaquin Valley Sun, report that an email Monday told workers that 100 percent of the company's employees would be furloughed.

What the furloughs mean for the future Toledo's Bitwise Industries, which was expected to open later this year, is unclear.

A city of Toledo spokeswoman released the following statement to WTOL 11 Wednesday afternoon:

"We were surprised to hear this announcement and don’t know anything more than what has been reported so far. Bitwise had pledged to bring nearly 400 new jobs to the city and provide training opportunities for workers looking to transition to a career in tech, so it is certainly disappointing to hear. We look forward to learning more in the days and weeks to come."

The spokeswoman also said the city remains committed to the development of the Social Innovation District (SID) in the Uptown area.

Bitwise Industries announced in February, 2021, that it planned to open a workforce development and innovation center in Toledo.

BitWise, a Fresno, Calif., tech company, partnered with ProMedica to develop Toledo's Bitwise Industries, which officials said would provide job training and development, along with incubation services for tech companies and businesses in other industries.

Officials said the project would create hundreds of regional jobs.

Plans called for the project to occupy a renovated Jefferson Center, a 1911 building at 1300 Jefferson Avenue that initially served as a post office. After it was a post office, Toledo Public Schools owned the building for many years. TPS used the building for a vocational rehabilitation school, among other things, until selling it to ProMedica in 2019.

Renovation of the former Jefferson Center began in 2022 and is ongoing.

Tammi Sherman, a Toledo native who graduated from Woodward High School and the University of Toledo, was appointed vice president of Bitwise Industries Toledo when the project was announced.

Bitwise's apprenticeship approach allows people to "earn-while-they-learn," and works to remove financial barriers of traditional education and professional advancement opportunities.

“We are extremely pleased to be partnering with Bitwise and to be its first community project outside of California,” Randy Oostra, then-president and CEO of ProMedica said in 2021. “The company has a strong track record, and its mission strongly aligns with ProMedica’s social determinants of health and innovations efforts. We believe this partnership will enable us to build upon our successes and continue the momentum in our community." 

ProMedica, which for several years under Oostra's leadership drove economic development in the region, has since shifted focus, though it remains a partner in the Bitwise Industries project. Oostra was replaced as the company's president in 2022 and retired later that year. 

After posting losses in 2022, ProMedica has sold off its money-losing skilled nursing facilities and is refocusing on its core business under new President and CEO Arturo Polizzi.

Bitwise's furlough announcement comes after the company reportedly has been late with rent and property tax payments and is seeking help from new investors, according to the San Joaquin Valley Sun. 

On Friday, the Fresno Bee reported that the co-founders and co-CEOs of Bitwise Industries, Jake Soberal and Irma Olguin Jr., were fired by the company’s board. One of the board members was then appointed as the interim president.

Olguin is a 2004 graduate of the University of Toledo and delivered the keynote address at the school’s graduation ceremony in 2021.

In early 2022, another potentially large job-creating project planned for northwest Ohio was scrapped when Peloton backed out of building its first U.S. factory in Wood County. 

The exercise-bike maker had announced plans in May, 2021 to build a $400 million Peloton Output Park in Troy Township, but nixed the project in February, 2022, as the company suffered losses to revenue and fitness subscribers.

                                       

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