Why so many megacorporations are downsizing from giant to just big.

From Marketplace. I'm Sabri Benishore in for David Bruncaccio.

Ten years ago, Kraft Heinz became one of the biggest food companies in the world.

It owns Oscar Meyer, Heinz ketchup, jello, cool whip, and a bunch more.

But it is now shrinking.

The company says it's just been spread too thin.

It's going to split in two.

And this unmerging has actually been a corporate trend recently.

Warner Brothers Discovery is breaking up into two media companies.

Honeywell is splitting up into three companies.

Marketplaces Kristen Schwab takes a look at why so many corporate breakups. Mergers and acquisitions make sense when company strategies go

together, like salt and pepper or peanut butter and jelly, or jello and Philadelphia cream cheese.

Eric Gordon is a professor of entrepreneurial studies at the University of Michigan.

When you put companies together, there's some hope that there's going to be synergy. Somehow

they're going to be better together. Merging means brands can share resources like marketing

departments and supply chains, but it can also create a lot of bureaucracy, which is why Gordon says it's common for merged

companies to later break apart.

The hope is each company will know exactly what it needs to do and can do it more efficiently

than some big, sprawling, conglomerate.

That shift has become especially important for companies as tariffs restructure the economy.

It's why Emily Feldman, a management professor at Wharton, thinks more corporations are splitting up.

I think it's an uncertainty-driven wave.

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