In its latest cost-cutting move, Amazon ended a decades-long charitable giving program.
In its blog post on Wednesday, the company announced that the AmazonSmile program would end on February 20 because it “failed to make the impact” it had hoped for.
The program allowed Amazon to donate a small percentage of eligible purchases to a charity chosen by shoppers.
“With so many deserving organizations — more than one million worldwide — our ability to make an impact is often not spread wide enough,” the company said.
The move comes even as the Seattle-based company has been laying off employees and downsizing various areas of its business in an effort to cut costs. Other tech companies, including Facebook parent Meta and Salesforce, are also laying off employees after surging hiring over the past two 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 would affect around 18,000 employees. JC said the job cuts would primarily affect the company’s retail division and its PXT organizations, which handle human resources and other functions. Other teams, including the company’s Alexa division, have also faced layoffs since November.
The company said that charities that are part of the AmazonSmile program will receive a “one-time donation” equal to three months of what they earned through the program last year. They will also be able to collect additional donations until the program officially closes, he added.
Amazon noted in the blog that it will continue to support other charitable programs, such as its Home Equity Fund that aims to create more affordable homes.