The San Francisco tech startup that helped popularize a push for a four-day workweek in Silicon Valley, is now laying workers off.

As first reported by the New York Times, Bolt, the payment services startup with offices near San Francisco’s Union Square, laid off around 250 of its around 900 employees Wednesday in a move to “secure our financial position, extend our runway, and reach profitability with the money we have already raised” amid industrywide financial challenges, according to a letter to staff.

A Bolt spokesperson confirmed to SFGATE Thursday that “approximately a third of the company” was laid off.

“It’s no secret that the market conditions across our industry and the tech sector are changing, and against the macro challenges, we’ve been taking measures to adapt our business,” recently appointed CEO Maju Kuruvilla said in the letter, which was made public Wednesday.

One laid-off employee, posting on the anonymous forum Blind, said that they received the news “after getting a pay-raise just a couple of weeks ago.”

The company, already dealing with a rocky 2022, now has to contend with the realities of a challenging period for fledgling tech startups.

Shortly after the wave of good press Bolt received in January for implementing a permanent four-day workweek (and, more crucially, its titanic $11 billion valuation), the company suffered a torrent of bad news. Founder and former CEO Ryan Breslow posted a fiery Twitter thread accusing notable startup accelerator Y Combinator of “Mob Sh*t” and being corrupted by “money, power, and greed.” (Breslow stepped down as CEO for the company just days later.)

In April, Authentic Brands — a fashion retail conglomerate that owns Forever 21 and Reebok and one of Bolt’s most high-level clients — sued the company for its failure to deliver on its promises for a checkout system for the brands in a timely manner.

The New York Times also ran an exposé earlier in May alleging that the company stretched the truth about its services to investors and prospective merchants.

“There’s no good way to share news of a restructure but it’s in our culture to be committed to candor and care, today and always,” Kuruvilla ended the letter. “I can’t thank you enough for all of your past, present, and future dedication to make Bolt what it is. We have an incredible team, great product, and the market needs us more than ever before. But today, my focus is on our people. Please be mindful and caring for your colleagues and yourself.”

It is unclear what severance benefits employees who were laid off will receive.

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Honor, a home care and related technology company, has laid off 35 employees at its San Francisco headquarters, The Chronicle has learned.

Jessica Gilmartin, Honor’s chief marketing officer, said the layoffs were cross-departmental, including general administrative and personnel roles. Honor plans to continue expanding the nursing workforce, she added.

“We have recently shed a small number of jobs – less than 10% of our total workforce excluding nurses,” Gilmartin wrote in an email. “These targeted reductions were made in the normal course of business and we have no further comment on why we made these small adjustments to our workforce.”

Honor was founded in 2014 and has been providing services in Contra Costa County since 2015. Today the company provides non-medical carers in the Bay Area and in more than 800 cities in California, Arizona, New Mexico, Texas, Ohio, and Michigan. The company initially hired its own home care workers and in 2016 moved them from independent contractors to regular employees with benefits and stock options. This change prevented the controversy some companies are now facing over whether their workers are being misappropriated as contractors.

Honor has been providing software and services to independent home care agencies – the former competitors – since 2017. Honor provides these agencies with technology for nurse planning, training, and performance tracking, as well as a telephone support team. Gilmartin said Honor is directly employing thousands of these caregivers and is transferring them to Honor’s payroll as employees of outside agencies. Direct caregivers will continue to be hired as well.

According to CrunchBase, the company has raised a total of $ 115 million since its inception.

News website Axios previously reported that Japanese conglomerate SoftBank waived its commitment to invest $ 150 million in Honor in November after agreeing to provide funding last year.

Gilmartin declined to comment on the report, but said the company was “fully funded”. The company is supported by Naspers Ventures, Andreessen Horowitz and Thrive Capital. CEO Seth Sternberg previously started Meebo, a messaging app, and worked at Google.

Chase DiFeliciantonio is a contributor to the San Francisco Chronicle. Email: Chase.difeliciantonio@sfchronicle.com Twitter: @ChaseDiFelice

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After closing two massive budget gaps this year, San Francisco will face a new deficit of $ 653.2 million over the next two fiscal years as COVID-19 soars and a severe economic shutdown continues to plague the city’s finances .

To fill that void, Mayor London Breed plans to instruct departments on Wednesday to cut costs. This could include painful layoffs and service cuts that have largely been avoided so far.

The city’s budget bureau projects a $ 411.1 million hole for the next fiscal year, which begins in July, and a $ 242.1 million deficit the following year. City officials were hoping for a stronger economic recovery at this point in the pandemic, but sales, hotel and corporate taxes have been lower than expected, while costs associated with the pandemic and expected staff increases are driving up spending.

“We need to be clear about the options if we do not address this deficit, and unfortunately every option is on the table,” said Jeff Cretan, the mayor’s spokesman. “The mayor still has the priority not to fire anyone. But we know that this deficit will require a lot of work and sacrifice and difficult choices. “

Despite the looming cuts, Cretan said the mayor’s budget priorities remain the same: helping small businesses, providing basic services, and helping the homeless and the mentally ill.

The recent surge in viruses has led the state and city to return to more extensive business shutdowns. While its biggest budget hit can be attributed to falling tax revenues, the city’s economic troubles also stem from the multi-million dollar hikes promised to most city workers.

Over the summer, Breed urged the 35 San Francisco unions, representing 37,000 city workers, to postpone the increases to avoid layoffs and service cuts. In preparing the budget, the city was confident that negotiations with the unions would postpone an increase, but only police and firefighters agreed.

In August, the Board of Supervisors agreed to use $ 36.9 million in business tax reserves to fund 3% increases for the majority of unions that year. Now the city is ready for a further 3% increase from July 1st and a half percent increase on January 1st, 2022.

Increases could be delayed due to a treaty provision to postpone increases for six months if the budget deficit exceeds $ 200 million, which happened this year. However, this depends on an update of the budget in March.

At the time, the mayor sharply criticized the board’s decision to dive into the city’s reserves.

The supervisor Catherine Stefani – the only supervisor to vote against the Board’s budget proposal in the autumn – accused its colleagues of having adopted a spending plan based on reserves. She said the new budget projections were a “self-inflicted wound”.

“I am very disappointed that we got to this point,” she said in a statement. “Instead of protecting our existing services, my colleagues spent beyond our means. … We have to make painful decisions to get back on track. “

Meanwhile, COVID-19 costs are expected to pull $ 100 million out of the general fund this fiscal year. The largest costs include testing, food security programs, and running the command center in Moscone. While officials expect COVID-19 costs to fall over the next year, they won’t go away entirely. Since the funds of the federal CARES law will be used up at the end of 2020, the city plans to spend roughly the same amount in the next fiscal year.

Another unsolved issue that could have budget implications is the city’s homeless hotel program. The Ministry of Homelessness and Supportive Housing is finalizing a program that will accommodate more than 2,300 homeless people in hotels. While the city expects FEMA to reimburse the majority of the expenses – which range from $ 15 million to $ 18 million per month – City Controller Ben Rosenfield has warned that funding could run out in the short term.

The Board of Supervisors plans to vote Tuesday on laws that could lead the city to fund the program longer than currently planned.

The new deficit arises after hard-fought battles to close the deficits this year. The city closed a $ 1.5 billion hole for this fiscal year and next in October and expects to use funds from the previous fiscal year to fill another $ 116 million gap that is better than expected ended. This included revenue from a public health department settlement and more property taxes. The rest of the deficit was addressed by streamlining the processes in the departments.

To cope with the crisis, the city has already started reducing its budget stabilization reserves and plans to use the full amount – up to $ 500 million – over the next three years. The deficit expects about $ 100 million to be used by mid-2022 from Proposition I, a voter-approved tax hike on property sales worth more than $ 10 million, but less the next year.

Supervisor Dean Preston proposed a bill last week that will bring in more than $ 11 million in Prop. I finance this financial year for rent relief and affordable housing. If the proposal is adopted, the deficit would increase by an additional $ 11 million.

Kretan said “any decision we make about funding other programs” will affect the ability to meet the mayor’s budget priorities.

The new deficit brings more uncertainty for the struggling city authorities. The San Francisco Municipal Transportation Agency, which lost 95% of its Muni tariffs, has a deficit of at least $ 68 million this fiscal year and potentially $ 168 million in the next fiscal year. The agency could lay off more than 20% of its employees and further restrict the service.

The San Francisco Chamber of Commerce sent a letter to the Board of Supervisors on Friday asking them to prioritize funding for Muni, which is vital for businesses and key workers.

“We are seeing a devastating deficit for MTA and Muni,” said Cretan. “Our transport is the definition of a basic, essential service in our city. If we lose that, it will hinder our economic recovery. It will affect our ability to move workers. As we make decisions, we need to think about the bigger picture and what it means to get this city back on its feet and moving forward. “

Theresa Rutherford, a nursing assistant who works at Laguna Honda and is vice president of SEIU 1021, which represents more than 17,000 city workers, said helping frontline workers is inseparable from the economic recovery.

“Without our input, without our work, without us making the sacrifice and sitting on the line to show up for work and take care of the city, whether it has a deficit or not, the city won’t thrive, it so will not be able to pull yourself out of the pandemic and it will only be in a worse situation, “Rutherford said. “Workers are basically some of the key resources the city needs to invest in to get back on its feet.”

Chronicle author Trisha Thadani contributed to this report.

Mallory Moench is a contributor to the San Francisco Chronicle. Email: mallory.moench@sfchronicle.com Twitter: @mallorymoench

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The San Francisco Municipal Transportation Agency may have to lay off nearly a quarter of its employees to meet its planned budget deficit for the next fiscal year if the agency does not receive government aid funding, agency officials said this week.

The SFMTA is currently well on its way to running a deficit of $ 68 million by the end of fiscal 2020-21. Since the fiscal year began on July 1, revenue has declined 12.7% as San Francisco residents avoid public transit during the coronavirus pandemic.

The agency has also exhausted many of their one-off tools to save money, such as: B. the introduction of a hiring freeze, the reduction of overtime and the use of federal funds from the Coronavirus Aid, Relief and Economic Security Act.

Even so, Jonathan Rewers, SFMTA’s senior budget manager, told the agency’s board of directors on Tuesday that the agency’s actual and projected revenue losses are so great that cuts in service and layoffs are on the table as a method of cutting spending.

SFMTA’s current revenue projections for fiscal 2022 show a net deficit of $ 168 million, even when factoring in financial savings such as the agency’s continuation of the agency’s hiring freeze. According to Rewers, without further federal funding, the agency would have to lay off between 989 and 1,226 full-time employees – this corresponds to 18% to 22% of its employees – in order to compensate for the projected deficit.

While the board took no action on Tuesday to address the projected deficits, its members discussed possible vacation days instead of layoffs as a possible tool to reduce revenue.

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Nearly 200 faculties and administrators at San Francisco City College are facing layoffs due to massive budget cuts in 39 departments and services that could result in City College students losing access to key programs, students and teachers said Friday.

“These cuts will destroy not only our faculty members and their families, but tens of thousands of students who rely on City College as a vital lifeline,” said Mary Braveman, vice president of the American Federation of Teachers 2121. “Our students need more opportunities, not less. “

(Kevin N. Hume / SF examiner)

The City College Board of Trustees on February 25 approved discharge notices in 39 departments and services that could be reduced or, in some cases, eliminated entirely due to a budget deficit of $ 33 million for the 2021-22 period. City College issued preliminary dismissals to 163 faculty members and 34 administrators on March 3.

“We stand in solidarity with our college community that the funding model for community colleges must change,” the City College administration said in a statement this week. “We are determined to meet the needs of our students while making the necessary changes to balance our budget and maintain our accreditation. We urge our work partners, elected officials, and the San Francisco community to work with City College during this difficult financial time. “

(Kevin N. Hume / SF examiner)

City regulators, including regulators Hillary Ronen and Connie Chan, attended events on Friday, which included a protest at City College and an art drive outside City Hall, and expressed solidarity with the group.

“After the toughest year most of us have ever had, City College has strengthened itself again and again during this pandemic, as always … when we needed you most, you were there and committed to us,” said Ronen. “And it’s the faculty, it’s the students, it’s the institution as a whole… I’m here to say it’s not okay, at the time we need City College most, even the Dismiss faculty [those] have fully enrolled the classes. That makes no sense. “

Several faculties, including some that received Pink Slip Notices, spoke about the importance of City College’s various programs, many of which are facing cuts. The focus was on the English as a Second Language or ESL program, one of those programs.

(Kevin N. Hume / SF examiner)

Fanny Law, a member of the ESL faculty and one of those who received a Pink Slip, spoke about the importance of the program in a city where 20% of Franciscans say they have limited knowledge of English.

“Like many Franciscans, I am an immigrant and English is my second language,” Law said. “I know what it is like to come to a country without knowing the language or feeling welcome. City College’s ESL program is vital for new immigrants who need our assistance in acquiring language skills that will lead them to professional programs, jobs, and transfer programs. Without a strong ESL program, there is nowhere for immigrants to start their journey to success in San Francisco. “

The law added that the program was cut by 20% already last year and will be cut another 25% if the proposed layoffs and cuts are implemented.

(Kevin N. Hume / SF examiner)

City College students and alumni also shared their experiences at the school and the way some of the programs faced with cuts changed their lives.

“When I experienced domestic violence, TSPS, which may be reduced by 40%, helped my anxiety,” said Eira Kien, a student at City College. “And when I was scared of going home, I turned to the Women’s Resource Center and Project Survive for help. To find out that the crucial faculty and department of women’s and gender studies have received pink slip-ups, the safety nets they helped set up are roughly swept away from them. “

City College student Jose Castaneda said he moved to San Francisco from Arizona after learning about City College programs and is now studying early childhood education there in hopes of becoming a preschool teacher. He said he hoped to move to San Francisco State or UC Berkeley at some point, but with the proposed cuts, he wasn’t sure it was still possible.

(Kevin N. Hume / SF examiner)

“City College has as many resources and programs for students like me as free City has EOPS, the DREAM Act, and so many other opportunities and programs for AB 540 students like me,” Castaneda said. “And they give us the chance to get higher-income, high-income positions if we want them. Disadvantaged students like me, who see the struggle, who live daily life in need, need and deserve a chance to succeed. CCSF gives us this chance and enables us to feel valued and important in a community in which we no longer really see it. “

In the zoom chat with over 800 signatures, a petition was expressed in which a vote of no confidence was expressed against the leadership of the administration of City College.

After the meeting, officials urged attendees to call regulators and local and state government officials to ask them to save City College from these massive cuts.

(Kevin N. Hume / SF examiner)

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