9 Mergers That Epically Failed
The article describes the nine famous corporations that failed to merge. Fairchild (2013) states that “the owner of Arby's bought Wendy's for $2.34 billion” (para. 2). Nevertheless, only after three years, Wendy's sold Arby's. The fail occurred between Bank of America and Countrywide, when the deal cost the bank approximately $40 billion. Kmart and Sears are also among the epic fails due to the considerably dropped revenue of the first one. eBay bought Skype for $2.6 billion in 2005 to sell it for $1.9 billion in 2009. Among the other failed mergers, there are AOL and Time Warner, Sprint and Nextel, Daimler-Benz and Chrysler, and Quaker and Snapple. However, it seems beneficial to point out the case of New York Central and Pennsylvania Railroads in detail. In 1998, when the mentioned railroads merged in order to avoid bankruptcy of the first, it seemed a good idea, as a result, competitors joined to create the Penn Central, and New York Central declared bankruptcy in 2000.
The 10 Biggest Corporate Layoffs of the Past Two Decades …show more content…
IBM cut its 60,000 staff because of the creation of the personal computer along with the client server. The second position in the list of discharges is taken by Citigroup that declared 50,000 cuts in the framework of the planned reductions. Sears Roebuck & Co also cut 50,000 employees as a result of 113 stores’ closure. General Motors had to fire 47,000 of the personnel with the closing of five factories and preparing to announce the bankruptcy. Such well-known corporations as AT&T, Ford Motor Co, Kmart Corp., Bank of America, and Circuit City Stores also had to cut their staff due to the increased competition or the ceased operation. In addition, Boeing also cut 31,000 employees as the aerospace reduced and the protection of the workforce of the company in 2001 cost too
The article describes the nine famous corporations that failed to merge. Fairchild (2013) states that “the owner of Arby's bought Wendy's for $2.34 billion” (para. 2). Nevertheless, only after three years, Wendy's sold Arby's. The fail occurred between Bank of America and Countrywide, when the deal cost the bank approximately $40 billion. Kmart and Sears are also among the epic fails due to the considerably dropped revenue of the first one. eBay bought Skype for $2.6 billion in 2005 to sell it for $1.9 billion in 2009. Among the other failed mergers, there are AOL and Time Warner, Sprint and Nextel, Daimler-Benz and Chrysler, and Quaker and Snapple. However, it seems beneficial to point out the case of New York Central and Pennsylvania Railroads in detail. In 1998, when the mentioned railroads merged in order to avoid bankruptcy of the first, it seemed a good idea, as a result, competitors joined to create the Penn Central, and New York Central declared bankruptcy in 2000.
The 10 Biggest Corporate Layoffs of the Past Two Decades …show more content…
IBM cut its 60,000 staff because of the creation of the personal computer along with the client server. The second position in the list of discharges is taken by Citigroup that declared 50,000 cuts in the framework of the planned reductions. Sears Roebuck & Co also cut 50,000 employees as a result of 113 stores’ closure. General Motors had to fire 47,000 of the personnel with the closing of five factories and preparing to announce the bankruptcy. Such well-known corporations as AT&T, Ford Motor Co, Kmart Corp., Bank of America, and Circuit City Stores also had to cut their staff due to the increased competition or the ceased operation. In addition, Boeing also cut 31,000 employees as the aerospace reduced and the protection of the workforce of the company in 2001 cost too