In a memo to employees on Wednesday, CEO Andy Jassy announced the change, saying it was part of the company’s annual planning process.

Amazon.com Inc. is laying off more than 18,000 employees, far more than previously planned, in the latest sign that the technology slump is worsening. In a memo to employees on Wednesday, CEO Andy Jassy announced the change, saying it was part of the company’s annual planning process. The cuts, which began last year, were expected to affect approximately 10,000 people. The layoffs are concentrated in the company’s corporate ranks, primarily in Amazon’s retail division and human resources functions such as recruiting.

“In the past, Amazon has weathered uncertain and difficult economies, and we will continue to do so,” he said. “With a stronger cost structure, we will be able to pursue our long-term opportunities.”

Though the prospect of layoffs has loomed over Amazon for months — the company has admitted that it hired too many people during the pandemic — the growing total indicates that the company’s outlook has deteriorated. It joins other tech titans in making significant cuts. Salesforce Inc. announced earlier Wednesday plans to lay off about 10% of its workforce and reduce its real estate holdings.

Amazon investors reacted positively to the latest cost-cutting measures, betting that it will boost the e-commerce company’s profits. After the Wall Street Journal first reported on the plan, the stock rose nearly 2% in late trading. The 18,000 job cuts would be the most significant for a tech company during the current slowdown, but Amazon has a far larger workforce than its Silicon Valley peers. As of the end of September, it had more than 1.5 million employees, implying that the latest layoffs would represent about 1% of the workforce.

A spokesperson for Amazon said in November that the company had approximately 350,000 corporate employees worldwide.

The world’s largest online retailer spent the final quarter of last year adjusting to a sharp slowdown in e-commerce growth as customers returned to pre-pandemic habits. Amazon has postponed warehouse openings and ceased hiring in its retail division. It extended the freeze to the company’s corporate staff before beginning to make cuts.

Jassy has closed or scaled back experimental and unprofitable ventures, including teams working on a telehealth service, a delivery robot, and a video-calling device for children, among other projects. In addition, the Seattle-based company is attempting to match excess capacity with cooling demand. According to people familiar with the situation, one effort is to try to sell excess space on its cargo planes.

Parts of Amazon’s business, which began as an online bookstore, are levelling off. However, it continues to invest in its cloud computing, advertising, and video streaming businesses. The first round of layoffs targeted Amazon’s Devices and Services division, which produces the Alexa digital assistant and the Echo smart speaker, among other products. Last month, the unit’s chief told Bloomberg that layoffs totaled less than 2,000 people, and that Amazon remained committed to the voice assistant.

Some recruiters and employees in the human resources department were offered buyouts. Jassy informed employees in November that more layoffs would occur in its retail and HR departments in 2023.

Jassy stated in the memo on Wednesday that the company would provide severance, transitional health benefits, and job placement to affected employees. In an apparent reference to the Wall Street Journal report, he also chastised an employee for leaking the news. He stated that the company intends to begin discussing the changes with affected employees on January 18.

“Long-lasting companies go through different phases,” Jassy explained. “They are not constantly expanding their workforce.”