You might think with so many tech firms laying off staff, this wouldn’t be a good time for the startups that specialize in selling recruiting and other human resources–related software, such as Deel, Rippling and Pave. The opposite may actually be true.

These firms are enjoying robust business, as at least some companies that last year cut staff are spending more money on HR software to better track employee performance and make their HR departments more efficient. Take buy now, pay later firm Sezzle, which laid off 20% of its workforce in North America last year. The company is planning to hire again this year but will rely less on HR staffers to do so. Instead, Sezzle will increase its spending on HR technology 14% this year, said Jasper Helling, senior vice president of people operations.