Fred Voccola, CEO of Kaseya, has weighed in on the tech industry’s mass layoffs, blaming companies and their customers.

Unlike some of the tech industry, Kaseya is still actively hiring. Finding success where others are experiencing setbacks has given Voccola insight into the industry’s layoffs, insights he shared with Fox Business:

“What we’re finding in the tech sector is a lot of the technology companies overextended themselves. And the primary reason for it is their customers,” Voccola told Fox Business’ Brian Brenberg.

“Most of the buyers of technology, if you think about a LinkedIn or a Microsoft or a Facebook, the majority of their customers are large enterprise companies. And those enterprise companies have spent the last 15 years digitally transforming themselves or investing huge amounts of money to make them digital-first companies. We’re kind of at the end of that stage now. So the technology companies haven’t properly adjusted their OpEx or their spending to account for that. So they’re seeing a slowdown in spending from their customers, and they’ve realized that they’re overextended. So they’re cutting back pretty aggressively,” he added.

Voccola said rising labor costs were another factor exacerbating workforce issues. Unlike many Silicon Valley companies, Kaseya’s South Florida location has helped it avoid that particular challenges:

“Depending geographically where people are situated, the rate of increase is slower,” Voccola said. “For example, in Silicon Valley, the rate of increase is astronomical. We’re a Miami-based company, so we have a little more reasonable labor rates. But the rates of labor are still going up.”