Regardless of large layoffs within the tech business over the previous yr, one CEO is in hiring mode.  

Fred Voccola, the CEO of Miami-based software program firm Kaseya, mentioned why the business is struggling and the way his enterprise is avoiding pink slips on “The Huge Cash Present” Tuesday.

“What we’re discovering within the tech sector is a number of the know-how firms overextended themselves. And the first purpose for it’s their prospects,” Voccola informed FOX Enterprise’ Brian Brenberg. 

“A lot of the patrons of know-how, if you consider a LinkedIn or a Microsoft or a Fb, nearly all of their prospects are massive enterprise firms. And people enterprise firms have spent the final 15 years digitally reworking themselves or investing enormous quantities of cash to make them digital-first firms. We’re type of on the finish of that stage now. So the know-how firms have not correctly adjusted their OpEx or their spending to account for that. So that they’re seeing a slowdown in spending from their prospects, and so they’ve realized that they are overextended. So that they’re reducing again fairly aggressively,” he defined. 


Mass layoffs at firms together with Amazon, Meta, Salesforce, and most lately LinkedIn rocked the tech sector over the previous yr, leaving 1000’s with out a place to work. 

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Voccola believes a part of the issue lies inside labor prices. In accordance with the Employment Price Index (ECI), U.S. labor prices rose 1.2% within the first quarter of 2023 and 4.8% year-over-year from March 2022 to March 2023. 

“Within the final 9 months, they’ve [labor costs] nonetheless gone up. I feel we’ll see them go up for the following yr or two. The labor prices are fairly excessive,” he stated. 

Nevertheless, sure areas of the U.S., together with South Florida the place his firm is headquartered, are usually not seeing a fast enhance in labor prices, Voccola famous.  

“Relying geographically the place individuals are located, the speed of enhance is slower. For instance, in Silicon Valley, the speed of enhance is astronomical. We’re a Miami-based firm, so now we have slightly extra affordable labor charges. However the charges of labor are nonetheless going up.”


Voccola went on to elucidate that he moved the corporate from California to the “very business-friendly” Miami the place it has expanded to do enterprise in additional than 10 nations. 

“You will have a extremely motivated workforce and a really cost-effective labor power and a fantastic enterprise state,” he stated. 

Whereas the pandemic modified workplace dynamics, the CEO stated he has maintained an in-office office. 

“It builds a tradition of undertaking a aim,” Voccola stated. “A typical aim if you’re round your colleagues daily, as an alternative of gazing a zoom in your lounge, doing all of your laundry between your conferences, it permits you to focus extra on the duty at hand.”