Shares of Zoom Video Communications (NASDAQ: ZM) were trading calmly until about 12:20 p.m. ET when they suddenly soared. The company announced that it was laying off workers and Zoom stock was up about 10% within 30 minutes. As of 1:30 p.m. ET, it had come back down somewhat, only trading about 5% higher for the session.

Zoom is following in the footsteps of many tech companies in recent months by laying off 15% of its workforce. In an official company blog post Tuesday, founder and CEO Eric Yuan said, "We need to take a hard -- yet important -- look inward to reset ourselves so we can weather the economic environment, deliver for our customers and achieve Zoom's long-term vision." 

Yuan is cutting his pay and that of management. For his part, Yuan's pay is dropping 98% and he's forgoing his bonus for the year. Other executives will see their base salaries cut by 20% and will also forgo their bonuses.

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Source Fool.com