2016 has been a mixed year for big business from around the world. But for many of the market leaders, it’s been a year they will like to forget quickly and move ahead. These businesses include big names such as Samsung (KRX:005930), Yahoo, Wells Fargo, Deutsche Bank, Twitter, Mylan, and a few others.
This is what happened to these big businesses in 2016.
The year started badly for Yahoo, with them having to sack 15 percent of their workforce. To make matters worse, the California-based tech then had to admit that there were two huge data breaches, which affected more than a billion users. These were some of the worst hacks in history where a lot of critical data was stolen. It even cast a doubt on whether Yahoo’s deal with Verizon will eventually go through.
The Yahoo stock has come down by 14 percent since September.
The electronics giant from South Korea has probably never had a worse year. They were forced to recall millions of Galaxy Note 7 smartphones after they blew up. Earlier, there were reports of these phones exploding in flights, which forced the airline companies to ban them. Samsung (KRX:005930) offered replacements, saying they were safe, but these phones began exploding as well. Eventually, they had to recall everything and stop its production.
As if that wasn’t enough, reports started to come in that their washing machines in the United States were catching fire too. The company had to recall almost 3 million washing machines.
What happened between 2005 and 2007 is still haunting this banking and financial services business from Germany. The Department of Justice slapped a steep $14 billion penalty Deutsche Bank for issuing mortgage loans to undeserving people and deliberately misinforming the investors. The penalty was later reduced to $7.2 billion, but it was still a massive jolt.
The Deutsche Bank stock had been at its lowest in the last 20 years.
It was bad for them even at the end of last year when they had to admit that Twitter was losing users. The Twitter (NYSE:TWTR) stock plummeted at the start of 2016. They began the search for a buyer, and it looked good for a while as Disney, Google, Verizon, Salesforce, and Microsoft all showed interest. But soon they all backed off, leaving Twitter with no buyer. The social media company has since then decided to integrate video into its service to boost its fortunes.