Packages move along a conveyor belt on the Amazon Success Center on Cyber Monday in Robbinsville, Recent Jersey, Monday, Nov. 28, 2022.
Stephanie Keith | Bloomberg | Getty’s paintings
Amazon he said It plans to shut its charity donation program on Wednesday, the newest example of the corporate’s wider cost-cutting efforts.
Through the program of AmazonSmile, the net retailer donates a percentage of eligible site purchases to a charity of buyers’ selection. Amazon said it has donated about $500 million to the charity because the 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, the program 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 make an impact has often been 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 big difference,” similar to disaster relief, reasonably priced housing initiatives and social assistance programs, the corporate said.
AmazonSmile’s move to shutdown comes as CEO Andy Jassy launched an in depth review of the corporate’s spending amid a deteriorating economic outlook and slowing growth in its retail division.
Amazon launched the largest 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, similar to a telehealth service and a unusual video-calling device for youngsters.
— Lora Kolodny of CNBC contributed to this text.
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