Amazon axes charity programme amid wider cost-cutting moves

Amazon is ending a charity donation programme it ran for a decade in its latest cost-cutting move.

In a blog post on Wednesday, the company said called AmazonSmile will shut down by February 20 because it has “not grown to create the impact” the retailer had hoped.

The programme allowed Amazon to donate a small percentage of eligible purchases to a charity selected by shoppers.

“With so many eligible organisations — more than one million globally — our ability to have an impact was often spread too thin,” the company said.

The decision comes as the Seattle-based company lays off workers and axes different areas of its business in an effort to trim costs.

Other technology companies, such as Facebook parent Meta and Salesforce, are also letting workers go after ramping up hiring over the past couple of years, when the pandemic made consumers increasingly reliant on the tech sector.

Amazon CEO Andy Jassy said earlier this month redundancies at his company will impact about 18,000 employees.

Mr Jassy said the job cuts will mostly affect the company’s retail division and its PXT organisations, which handle human resources and other functions.

Other teams, including the company’s Alexa division, have also faced layoffs since November.

The company said charities that have been a part of the AmazonSmile programme will be provided a “one-time donation equivalent” to three months of what they earned last year through the programme.

They will also able to accrue additional donations until the programme officially closes, it said.

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