Amazon to Cut Charity Program in Latest Cost-Cutting Move

Amazon has already announced it will be laying off thousands of employees as part of what the company said are necessary cost-cutting moves.

The latest Amazon program to hit the chopping block? AmazonSmile, the charity donation program it had run for a decade.

In a blog post Wednesday, the company said the program will shut down in February because it had “not grown to create the impact” the retailer had hoped.

Under the program, Amazon donate a small percentage of eligible purchases to a charity selected by shoppers.

“With so many eligible organizations – more than 1 million globally – our ability to have an impact was often spread too thin,” the company said in the blog post.

Amazon isn’t the only tech company doing some cost-cutting. Meta (parent company to Facebook) and Salesforce have also announced staffing cuts after ramping up hiring over the past couple of years, when the pandemic made consumers increasingly reliant on the tech sector. According to the Associated Press, Amazon CEO Andy Jassy said earlier this month his company would lay off some 18,000 employees, mostly affecting Amazon’s retail operation 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.

Amazon noted in the blog post it will also continue supporting other charitable programs, such as its housing equity fund that aims to build more affordable homes.