Shirine Khoury-Haq, the Chief Executive of the Co-operative Group, has announced her resignation following a series of allegations regarding a detrimental workplace culture within the organisation. This decision comes shortly after a BBC report highlighted claims of a “toxic culture” among senior staff, who reported feelings of intimidation and reluctance to voice concerns. Khoury-Haq’s departure also coincides with the Co-op’s announcement of a £126 million annual loss, exacerbated by a significant cyber-attack last year.
Allegations of a Toxic Culture
In early February, the BBC revealed that numerous senior managers at the Co-op had expressed serious concerns over the internal atmosphere, describing an environment marked by “fear and alienation.” According to these reports, employees felt pressured to remain silent on crucial matters, fearing repercussions from the leadership team. One senior manager lamented the situation, stating, “You learn to look at your shoes. Nobody can speak their mind in this business—anyone who does has their card marked.”
The culture of silence reportedly led to a series of misguided decisions that adversely affected employee morale, resulting in abrupt departures and contributing to declining profits. In response to the allegations, the Co-op’s legal representatives stated that they did not believe these views were representative of the broader leadership or workforce.
Financial Challenges and Cyber Incident
The Co-operative Group has faced a tumultuous year, not only due to the internal issues but also because of external challenges. In April 2025, the organisation was the target of a cyber-attack that compromised the data of all 6.5 million members. This incident forced the Co-op to shut down portions of its IT systems and has since been estimated to have cost the group around £285 million in lost sales.
In light of these difficulties, Khoury-Haq remarked, “Following last year’s cyber-attack, the organisation is now ready to deliver on an ambitious strategy of stabilisation and transformation. This extends beyond the timeframe I had planned for my CEO tenure, and now is the right moment to hand over to leadership that can commit to seeing the strategy through.”
Transition of Leadership
Khoury-Haq, who has been with the Co-op for seven years and served as CEO for four, is set to officially step down on 29 March. In her absence, Kate Allum, currently a member-nominated director on the Co-op board, has been appointed as interim group CEO. The Co-op chair, Debbie White, expressed gratitude for Khoury-Haq’s contributions during her tenure, particularly amidst the challenges faced in recent years.
“We thank Shirine for her leadership and for the significant contribution she has made to our Co-op, to our communities, and to the co-operative movement during her tenure. The Board is grateful for her commitment and leadership, particularly during a challenging few years, and we wish her every success in the future,” White stated.
Why it Matters
Khoury-Haq’s resignation highlights the critical importance of workplace culture in organisational success. The Co-op, a historic leader in the co-operative movement, now faces the dual challenge of addressing internal issues and navigating its recovery from financial losses. The new leadership must not only stabilise the organisation but also foster an inclusive environment that encourages open dialogue. How the Co-op responds to these challenges will be pivotal in determining its future trajectory and maintaining its reputation within the industry.
