(NEXSTAR) – Amazon will be shutting down its philanthropic program, AmazonSmile, in the coming weeks to focus philanthropic donations on programs with greater impact.
In a letter sent to AmazonSmile customers on Wednesday, Amazon explained that the program “has not grown to the level of impact it initially hoped.”
“With so many eligible organizations (more than one million worldwide), our ability to influence was often spread too thinly,” Amazon wrote.
AmazonSmile was launched in 2013. Through this program, Amazon will donate her 0.5% of the price of eligible purchases to a charity of the shopper’s choice. According to the AmazonSmile website, over 1 million charities have received his $400 million through the program.
A spokesperson told Nexstar that the average annual donation is less than $230.
Amazon currently plans to “scale down” AmazonSmile by February 20, 2023.
“From building affordable housing, to providing access to computer science education to students in underserved communities, to using logistics infrastructure and technology to help the wider affected community. We will continue to pursue and invest in other areas where we can bring about meaningful change until we do so through natural disasters,” the company said.
Charities affected by the termination of AmazonSmile will receive a one-time donation equal to three months’ worth of amounts received in 2022, Amazon explained. Charities can continue to receive donations until the program officially ends.
Even after AmazonSmile ends, charities will still be able to create wishlists that customers can purchase to support the organization, Amazon said.
The announcement comes at a time when Amazon has launched one of its largest layoffs, affecting nearly 18,000 employees.
“Amazon has navigated uncertain and challenging economies in the past, and will continue to do so,” CEO Andy Jassy said in a message to employees earlier this month. “These changes will help us pursue long-term opportunities with a stronger cost structure.”
