Summary
ABN Amro, a major Dutch bank valued at $24 billion, is currently in the middle of a plan to cut 20% of its total workforce. To keep the remaining employees motivated during this difficult transition, CEO Marguerite Bérard has started a new tradition of having weekly lunches with small groups of staff. By trading long, formal meals for simple sandwiches, she hopes to listen to employee concerns and build a stronger sense of unity within the company. This move comes as the bank struggles to meet profit goals and stay competitive in the European market.
Main Impact
The decision to cut 5,200 jobs over a four-year period is a significant shift for the bank and its thousands of employees. For those who remain, the work environment is changing as the company focuses heavily on reducing costs and increasing efficiency. The CEO’s strategy of "sandwich diplomacy" is an attempt to manage the human side of these corporate cuts. By meeting with workers in small groups, Bérard is trying to ensure that the staff understands the reasons behind the layoffs while giving them a direct way to share their feedback with the top leader.
Key Details
What Happened
ABN Amro announced a major restructuring plan that involves cutting one-fifth of its staff between 2024 and 2028. The bank is trying to recover from a period of lower-than-expected profits. Marguerite Bérard, the bank's CEO, has committed to meeting with eight to ten colleagues every week for lunch. During these meetings, she listens to their views on the bank’s future. This is a notable change for Bérard, who moved from a French business culture where lunch breaks are usually long and formal to a Dutch style that favors quick meals and group agreement.
Important Numbers and Facts
The bank aims to cut a total of 5,200 positions by the year 2028. As of the end of 2025, approximately 1,500 employees have already been let go. Financially, the bank is working toward a "return on equity" of at least 12%. This number tells investors how much profit the bank makes compared to the money put in by shareholders. Additionally, the bank wants to keep its "cost-to-income ratio" below 55%, which means they want to spend less than 55 cents for every dollar they earn. These targets are the main reason the bank is reducing its staff size.
Background and Context
ABN Amro has a long history, but it has faced many hurdles since the global financial crisis of 2008. At that time, the bank had to be saved from failing by the government. In the years since, it has worked to regain its footing. However, recent financial reports showed that the bank’s profits in the last part of 2025 did not meet what experts had predicted. To fix this, the leadership decided that the bank needed to become smaller and more profitable. In the Netherlands, business culture often relies on "consensus," which means getting everyone to agree on a plan before moving forward. Bérard is using these lunches to build that agreement among her staff.
Public or Industry Reaction
The idea of a CEO eating with regular employees is becoming a popular trend among successful leaders. For example, Chris Tomasso, the head of the restaurant chain First Watch, often eats in the staff break room. He also writes handwritten notes to employees to celebrate their work anniversaries. Similarly, Tim Cook, the CEO of Apple, is known for sitting with random employees in the company cafeteria rather than staying in a private office. Leaders at the language-learning app Duolingo also follow this path. Their executives eat in a public dining area to hear "the real stuff" that employees might not say in a formal meeting. These leaders believe that casual conversations provide better information than official surveys.
What This Means Going Forward
The bank has promised to handle the job cuts in a responsible way by helping former employees find new roles outside of the company. However, the road ahead remains challenging. Bérard has noted that while building agreement is important, the bank must also move quickly to stay healthy. The focus will stay on reaching the 12% profit goal while trying to keep the remaining workforce engaged and productive. If the "sandwich lunches" work, they could serve as a model for how other large companies handle difficult changes without losing the trust of their people.
Final Take
Leading a company through mass layoffs is one of the hardest tasks a CEO can face. While the financial goals of ABN Amro are clear, the human cost is high. By stepping out of the executive suite and sharing a simple meal with workers, Marguerite Bérard is attempting to show that leadership can be approachable even during tough times. This strategy highlights a growing belief in the business world that direct communication and simple human connection are just as important as financial spreadsheets.
Frequently Asked Questions
Why is ABN Amro cutting so many jobs?
The bank is cutting 5,200 jobs to reduce costs and improve its profit margins. It wants to reach a 12% return on equity and keep its spending low compared to its income.
How is the CEO trying to help the remaining staff?
CEO Marguerite Bérard is holding weekly lunches with small groups of employees. She uses this time to listen to their concerns and explain the company's strategy in a more personal setting.
Is this common for other large companies?
Yes, several other major CEOs, including those at Apple and Duolingo, use communal lunches to stay connected with their employees and hear honest feedback about the company.
