Amazon is shutting down its charity program amid massive companywide layoffs, claiming its 'ability to have an impact was often spread too thin'
- Amazon announced that it would "wind down" its AmazonSmile program in February.
- Since the program's inception in 2013, it helped donate over $449 million to participating organizations as of December.
Amazon is putting an end to its AmazonSmile charity program after nearly 10 years of supporting philanthropic organizations.
The e-commerce giant sent an email to customers on Wednesday announcing plans to "wind down" AmazonSmile, according to an Amazon blog post. The program originally launched in 2013, and donated an estimated $449 million as of December before ultimately falling short of its global impact goals,
"After almost a decade, the program has not grown to create the impact that we had originally hoped," the email read. "With so many eligible organizations — more than 1 million globally — our ability to have an impact was often spread too thin."
Amazon plans to fully close the program by February 20 and focus its philanthropic efforts elsewhere, per the email. The nearly one million organizations who currently participate in AmazonSmile can expect a one-time donation worth three months of their 2022 earnings from the program, the company wrote.
Organizations participating in AmazonSmile include the World Wildlife Fund, the American Society for the Prevention of Cruelty to Animals, and St. Jude Children's Research Hospital. Through the program, Amazon shoppers could visit smile.amazon.com allocate 0.5% of their purchase to a participating organization of their choice for no extra charge.
Despite its promise to continue putting money toward charities, the move comes as Amazon has begun showing signs of financial trouble. On Wednesday, the company announced it would start laying off roughly 18,000 employees — the largest layoff in company history, according to Insider's Eugene Kim.
In November 2022, Amazon founder Jeff Bezos promised to give away the bulk of his $124 billion fortune to charity throughout his life, Insider reported. Bezos' ex-wife MacKenzie Scott also made a pledge to donate her over $20 billion fortune in 2019 and has given away about $14 billion so far.
Although Bezos stepped down as Amazon's CEO in 2021, chatter about his possible return to the company has increased amid layoffs and a plummeting stock price, according to Insider.
Though AmazonSmile will soon cease, the company said it will continue to "support hundreds of local nonprofits" and its internal charity programs like the Housing Equity Fund, Amazon Future Engineer, Community Delivery Program, and Amazon Disaster Relief.