Image of an Amazon warehouse in Syosset, New York. (Photo by Howard Schnapp/Newsday RM via Getty Images)
Amazon is defensive a charity donation program it ran for a decade in its novel cost-cutting move.
In a blog post on Wednesday, the commerce said the program, called AmazonSmile, will shut down by February 20 because it had "not grown to fabricate the impact" the retailer had hoped.
The program decided Amazon to donate a small percentage of eligible purchases to a charity selected by shoppers.
"With so many eligible organizations—more than 1 million globally—our sequence to have an impact was often spread too thin," the commerce said.
RELATED: Amazon begins cutting 18,000 workers in its biggest layoffs ever
The decision-making also comes as the Seattle-based company is laying off workers and open different areas of its business in an effort to trim compensations. Other tech companies, such as Facebook parent Meta and Salesforce, are also letting workers go after ramping up recruit over the past couple of years, when the pandemic made consumers increasingly reliant on the tech sector.
Amazon CEO Andy Jassy said in return this month the layoffs at his company will influences about 18,000 employees. Jassy said the job cuts will mostly clutch the company's retail division and its PXT organizations, which achieve 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 program will be devoted a "one-time donation equivalent" to three months of what they earned last year ended the program. They'll also able to accrue additional donations pending the program officially closes, it said.
Amazon noted in the blog post it will also stay supporting other charitable programs, such as its housing disagreement fund that aims to build more affordable homes.