E-commerce giant Amazon has revealed plans to discontinue its charity donation program, AmazonSmile amid a worsening economic outlook.
The company on its website disclosed that it will shut down the program on February 20, 2023, while noting that after almost a decade, the AmazonSmile program has not grown to create the impact it had originally hoped for which has spurred it to invest in areas where it can make meaningful changes.
Investors King understands that Amazon has donated more than $377 million globally to charitable organizations through the AmazonSmile program since its launch in 2013.
The company has also supported hundreds and thousands of nonprofits from global humanitarian efforts and animal welfare groups to hospitals, school PTA’s, and more. These organizations received donations from Amazon generated by customers who shopped using AmazonSmile.
The charity program is a simple way for customers to support their favorite charity every time they shop with Amazon.
Meanwhile, Amazon is currently having a wave of frugality under CEO Andy Jassy who is implementing massive cost cuts at the company. The company has also commenced the largest layoffs in its history and has instituted a hiring freeze across its corporate workforce.
Executives at Amazon have already sent Memos to employees about job cuts. Recall that it disclosed earlier this month, it plans to cut more than 18,000 jobs as it seeks to navigate macroeconomic conditions.
In November 2022, CEO Andy Jassy disclosed that the company would begin eliminating roles primarily in its devices and recruiting organizations.
He is also undergoing a broad review of Amazon’s expenses as the company reckons with an economic downturn and slowing growth in its core retail business.
Last year, Amazon was faced with dwindling revenue as it battled several economic challenges such as rising inflation, fuel cost, and other macroeconomic factors. This forced it to slap a 5% surcharge on its online sellers.
