Amazon discontinues AmazonSmile charitable donation program amid cost cuts

Amazon He said On Wednesday, it plans to shut down its charitable donation program, in the latest example of the company’s broader cost-cutting efforts.

Through the program called Amazon smileThe e-retailer donates a percentage of eligible purchases on the site to the charitable organization of shoppers’ choice. Amazon said it has donated nearly $500 million to charities since launching the program in 2013.

Amazon now plans to end AmazonSmile by February. 20, the company said in a notice to customers posted on its website.

“Nearly a decade later, the software has not evolved to have the impact we originally hoped,” the company said. “With so many eligible organizations – more than a million globally – our ability to make an impact has often been very weak.”

Amazon said the average donation to charity was less than $230.

The company said Amazon will continue to invest in areas where it can “make a meaningful difference,” such as assistance with natural disaster relief, affordable housing initiatives, and community assistance programs.

The move to shut down AmazonSmile comes as CEO Andy Jassy I proceeded On a comprehensive review of the company’s expenses amid a deteriorating economic outlook and slowing growth in the retail division.

Amazon I started The largest layoffs in its history and a hiring freeze across the company’s workforce. As Jassy worked to rein in costs, the company paused warehouse expansion and closed some pilot projects like a telehealth service and a quirky video calling device for kids.

– CNBC’s Laura Kolodny contributed to this article.

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