The chief executive of the Co-op is stepping down weeks after allegations of a “toxic culture” at the top of the organisation raised concerns about leadership, employee voice and workplace environment.
Co-op said Shirine Khoury-Haq will leave her role on 29 March, following a turbulent period that included internal concerns about culture, a major cyber-attack and a significant financial loss.
Her departure comes shortly after reports that senior staff felt unable to challenge leadership decisions, with claims of fear and disengagement at senior levels of the business.
The timing of the exit is likely to intensify scrutiny of how leadership culture and decision-making are managed within large, complex organisations.
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Culture issues raised by senior staff
Concerns about workplace culture emerged after reports that a letter sent to board members described an environment marked by “fear and alienation”, including among senior leaders.
In February, the BBC reported that senior managers felt intimidated and unable to speak openly in front of the most senior executives. One senior manager described a culture where employees avoided raising concerns. “You learn to look at your shoes. Nobody can speak their mind in this business; anyone who does has their card marked,” they said.
Several sources also told the BBC that a lack of challenge had contributed to poor decision-making, falling morale and abrupt departures, alongside what was described as a “sharp drop in profits and a rocketing of food waste”.
The Co-op previously said it did not recognise the claims, with its lawyers saying they did not reflect the views of the wider leadership team or workforce.
But following publication of the report, other people contacted the BBC and raised similar concerns about culture at the top of the organisation. The reports have prompted wider questions about psychological safety and whether employees felt able to challenge leadership decisions without fear of repercussions.
Leadership change follows difficult year
Khoury-Haq, who has been with the organisation for seven years and chief executive since 2022, said the timing of her departure reflected the next phase of the Co-op’s plans.
“It has been an honour to lead our Co-op as CEO. It is not only a commercial enterprise but also deeply embedded in communities, doing right by them and our members every day,” she said.
The company said she had overseen a period of significant change, including a 95 percent reduction in debt and a 30 percent increase in profit between 2022 and 2024, before the impact of a cyber-attack in 2025.
The attack led to the shutdown of parts of the organisation’s IT systems and resulted in the data of millions of members being accessed. The Co-op said the incident and its response contributed to an estimated £285 million hit to sales.
In its latest results, the group reported a £126 million annual loss, revealing the scale of the challenges faced over the past year.
“Following last year’s cyber attack, the organisation is now ready to deliver on an ambitious strategy of stabilisation and transformation,” Khoury-Haq said. “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.”
Group Chair Debbie White acknowledged Khoury-Haq’s leadership during a difficult period.
“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,” she said. “The Board is grateful for her commitment and leadership, particularly during a challenging few years, and we wish her every success in the future.”
Interim leadership and organisational reset
Kate Allum, currently a member-nominated director on the board, has been appointed interim group chief executive while a search is carried out for a permanent successor.
The Co-op said the leadership change comes at a point where the organisation is seeking to stabilise operations and deliver a longer-term transformation strategy following the disruption caused by the cyber-attack.
The transition is expected to focus on restoring performance while maintaining the organisation’s member-led model and community focus.
Leadership changes of this kind often prompt a broader review of governance, decision-making and internal culture, particularly where concerns have been raised about how senior teams operate.
What this means for workplace culture
The developments are likely to prompt renewed attention on workplace culture, particularly in relation to how employees raise concerns and how leadership teams respond. Experts say it demonstrates the importance of creating environments where staff feel able to challenge decisions and speak openly without fear of repercussions.
Issues around psychological safety, leadership behaviour and internal communication are increasingly seen as central to organisational performance, rather than secondary concerns.
The case also illustrates how cultural issues can intersect with commercial outcomes, particularly during periods of operational and financial pressure.
William Furney is a Managing Editor at Black and White Trading Ltd based in Kingston upon Hull, UK. He is a prolific author and contributor at Workplace Wellbeing Professional, with over 127 published posts covering HR, employee engagement, and workplace wellbeing topics. His writing focuses on contemporary employment issues including pension schemes, employee health, financial struggles affecting workers, and broader workplace trends.
- William Furney
- William Furney
- William Furney
- William Furney
