Amazon is ending a decade-long charitable giving program as part of its latest cost-cutting move.
In a blog post on Wednesday, the company said the program, called AmazonSmile, would be discontinued by Feb. 20 because it “didn’t have the impact” the retailer had hoped for.
The program allowed Amazon to donate a small percentage of eligible purchases to charities chosen by shoppers.
“With a large number of eligible organizations – more than 1 million worldwide – our ability to make an impact has often been too weak,” the company said.
The decision also comes as the Seattle-based company lays off employees and cuts various areas of its business to cut costs. Other tech companies, such as Facebook parent Meta and Salesforce, are also shedding workers after ramping up hiring over the past couple of years as the pandemic has made consumers increasingly reliant on the tech sector.
Earlier this month, Amazon CEO Andy Jassy said the layoffs at his company would affect about 18,000 employees. Jassi said the job cuts will mainly affect the company’s retail division and its PXT organization, which handles human resources and other functions. Other teams, including the company’s Alexa division, have also faced layoffs since November.
The company said charities that participated in the AmazonSmile program would be given a “one-time donation equivalent” to three months of what they earned last year through the program. They will also be able to accumulate additional donations until the program officially closes, according to the report.
Amazon said in a blog post that it will also continue to support other philanthropic programs, such as its housing fund, which aims to build more affordable homes.
The Associated Press contributed to this report.
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