Fred Voccola, the CEO of Miami-based software company Kaseya, discussed why some companies in the tech sector are laying off workers.
“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.
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“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 explained.
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