Summary
Marguerite Bérard, the CEO of the Dutch bank ABN Amro, has started a new tradition to help her staff through difficult times. Every week, she sits down to eat sandwiches with a small group of employees to hear their thoughts and concerns. This move comes as the bank prepares to cut about 20% of its workforce over the next few years. By meeting with workers in person, the CEO hopes to build trust and explain why these big changes are necessary for the company’s future.
Main Impact
The biggest impact of this plan is the reduction of the bank's workforce. ABN Amro is cutting 5,200 jobs between 2024 and 2028. For a company valued at $24 billion, this is a major shift in how it operates. The CEO’s weekly lunches are designed to stop employees from feeling ignored during this transition. By talking directly to staff, Bérard wants to ensure that those who remain at the bank stay motivated and understand the company's goals.
Key Details
What Happened
Marguerite Bérard, who is French, had to change her own habits to fit the work culture in the Netherlands. In France, business lunches are often long and formal. Now, she takes a quick lunch at her desk or with her team. Once a week, she meets with eight to ten colleagues. They eat sandwiches and talk openly about the bank’s progress and the challenges they face. This is part of a larger effort to create a culture where everyone feels they have a voice.
Important Numbers and Facts
The bank has set clear financial targets to improve its business. It wants to reach a return on equity of at least 12%. It also aims to keep its costs low, specifically keeping its cost-to-income ratio below 55%. To reach these goals, the bank must reduce its spending. By the end of 2025, the bank had already cut 1,500 positions. The remaining 3,700 cuts will happen over the next two years. Despite these cuts, the bank reported that its profits in late 2025 were lower than experts had predicted, which adds more pressure to save money.
Background and Context
ABN Amro has faced many challenges over the last 15 years. It had to be saved from failing during the global financial crisis years ago. Since then, it has struggled to grow as fast as its competitors. The banking world is changing quickly, and many traditional banks are finding it hard to keep up with new technology and rising costs. To survive, ABN Amro decided it needed to become smaller and more efficient. This is why the job cuts are happening. The CEO believes that for the bank to succeed, the staff must agree with the new strategy, even if it is painful.
Public or Industry Reaction
Other major companies use similar methods to stay connected with their workers. For example, the CEO of the restaurant chain First Watch, Chris Tomasso, often eats in the break room with his staff. He believes it is important for a leader to be seen as a regular person rather than just a boss. Similarly, Tim Cook, the head of Apple, is known to sit with random employees in the company cafeteria. At the language-learning company Duolingo, top leaders eat in the public dining area every day. These leaders say that informal chats during lunch often reveal more about the company’s health than official meetings or surveys do.
What This Means Going Forward
The next few years will be a testing period for ABN Amro. The bank has promised to handle the job cuts in a responsible way by helping former employees find new work. However, cutting thousands of jobs is never easy. Bérard admitted that building a shared vision takes time. While she wants everyone to agree on the path forward, she also noted that the bank cannot stay the same. It must move quickly to stay competitive in the global market. The success of these weekly lunches will be measured by how well the remaining staff performs and whether the bank hits its profit targets by 2028.
Final Take
Leadership is changing. In the past, CEOs often stayed in private offices and only spoke to other executives. Today, leaders like Marguerite Bérard recognize that a $24 billion company is only as strong as its people. By choosing to eat a simple sandwich with her staff, she is sending a message that every worker's opinion matters. While sandwiches alone cannot fix the stress of job cuts, they represent a step toward a more open and honest workplace.
Frequently Asked Questions
Why is ABN Amro cutting so many jobs?
The bank is cutting 5,200 jobs to reduce costs and improve its profits. It wants to become more efficient so it can compete better with other banks and reach its financial goals by 2028.
How is the CEO trying to help the staff?
CEO Marguerite Bérard is holding weekly lunch meetings with small groups of employees. These meetings allow her to listen to their concerns and explain the company's plans in a more personal way.
Is this common for CEOs of large companies?
Yes, many successful leaders at companies like Apple, First Watch, and Duolingo use informal meals to connect with their teams. They find that these casual settings help them learn things they might miss in formal business meetings.
