Packages move along a conveyor belt on the Amazon Fulfillment Center on Cyber Monday in Robbinsville, New Jersey, Monday, Nov. 28, 2022.
Stephanie Keith | Bloomberg | Getty Images
Amazon he said It plans to shut its charity donation program on Wednesday, the most recent example of the corporate’s wider cost-cutting efforts.
Through this system of AmazonSmile, the web retailer donates a percentage of eligible purchases on the location to a charity of the customer’s selection. Amazon said it has donated about $500 million to the charity for the reason that program launched in 2013.
Amazon now plans to liquidate AmazonSmile by February 20, the corporate said in a notice to customers posted on its website.
“After nearly a decade, this system has not developed to have the impact we originally hoped for,” the corporate said. “With so many eligible organizations – greater than 1 million worldwide – our ability to exert influence was often too limited.”
Amazon said the typical charitable donation was lower than $230.
Amazon will proceed to speculate in areas where it could actually “make a major difference,” reminiscent of disaster relief, inexpensive housing initiatives and social assistance programs, the corporate said.
AmazonSmile’s move to shutdown comes as CEO Andy Jassy launched an intensive review of the corporate’s spending amid a deteriorating economic outlook and slowing growth in its retail division.
Amazon launched the most important layoffs in its history and imposed a job freeze on corporate employees. As Jassy worked to contain costs, the corporate halted expansion of the warehouse and shut down some experimental projects, reminiscent of a telehealth service and a unusual video-calling device for kids.
WATCH: Tech layoffs soar as Amazon proclaims 18,000 more job cuts