Amazon is ending a decade-long charity donation program in its latest cost-cutting move.
In a blog post on Wednesday, the company said the program, called AmazonSmile, would be shut down on February 20 because it “didn’t grow to make the impact” that retailers wanted.
The program allows Amazon to donate a small percentage of eligible purchases to a charity chosen by shoppers.
“With so many eligible organizations – more than 1 million worldwide – our ability to have an impact is often very widespread,” the company said.
The decision also comes as the Seattle-based company is laying off employees and winding down various areas of its business in an effort to cut costs. Other tech companies, such as Meta’s parent Facebook and Salesforce, have also let go of workers after hiring over the past few years, as the pandemic has made consumers increasingly dependent on the tech sector.
Amazon CEO Andy Jassy said earlier this month that layoffs at his company will affect about 18,000 employees. Jassy said the job cuts mostly affect the company’s retail division and the PXT organization, which handles human resources and other functions. Other teams, including the company’s Alexa division, have also experienced layoffs since November.
The company said that charities that are already part of the AmazonSmile program will be given a “one-time donation equivalent” of up to three months of what they earned last year through the program. They will also receive additional donations until the program is officially closed, he said.
Amazon noted in a blog post that it will also continue to support other charitable programs, such as a home equity fund that aims to build more affordable homes.
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