Co-op Defends Leadership Culture Amid Reports of Senior Staff 'Fear'
The Co-op has strongly defended its organisational culture and the behaviour of its senior leadership team, following reports that senior managers have complained of a "toxic" environment at the member-owned grocery and services chain. The company stated it does not believe these criticisms "represent the views of our broader leadership and colleagues."
Letter Alleges Culture of 'Fear and Alienation'
According to a BBC report, a letter claiming to reflect the views of a significant number of senior managers was sent to the Co-op's chair and another board member last month. The letter reportedly raised serious concerns about a culture of "fear and alienation" within the organisation.
The BBC's investigation found that some senior staff members feel scared to raise concerns about business decisions in front of company management, including chief executive Shirine Khoury-Haq. Sources at senior manager level told the broadcaster they have personally felt intimidated or afraid to speak up to most senior executives.
Organisational Changes Following Cyberattack
The letter also reportedly raised concerns about organisational changes implemented at Co-op following a major cyberattack in 2025, which impacted the group's sales by more than £200 million. As part of its recovery strategy, Co-op created a Group Commercial and Logistics (GCL) division aimed at pursuing store partners and buying opportunities.
This restructuring consolidated several commercial teams into a single unit and resulted in a significant senior leadership shake-up. The company viewed the recovery from the cyberattack as an opportunity to make structural and management changes to strengthen the business for the future.
Management Response to Concerns
A Co-op spokeswoman addressed the concerns directly, stating: "Our culture, as a co-operative, ensured decision-making throughout has listened to views from leaders and colleagues across our food and wider business, whilst simultaneously acknowledging when a wide range of views are expressed, not everybody will always agree with the final decisions and actions taken."
She added: "We do not recognise the critical comments referencing culture, leader behaviours and decision-making in our Co-op and do not believe that they represent the views of our broader leadership and colleagues."
Business Performance Concerns
The BBC report indicated that senior managers told the broadcaster the business reorganisation was partly responsible for weakening the company's performance. They suggested that the impact of last year's cyberattack can no longer be blamed for current challenges.
Staff reportedly warned that the changes would cause confusion among suppliers and disruption to business operations. However, Co-op's spokeswoman defended the decisions, stating: "Following the cyberattack in 2025, which had a significant financial and operational impact on our business, we took informed decisions at pace to bring back the customers we had lost during the period of disruption and ensure the business was set up for future success."
Current Business Position
Co-op reported that all its businesses, including the food division, have now seen market share return to pre-cyberattack levels. The company stated: "Equally, GCL was established to significantly grow at scale our buying group and the opportunities from that are already driving positive results."
The spokeswoman emphasised: "Our colleague engagement remains high, and our culture and ethos mean we continue to engage with all our colleagues and leaders to ensure they act constructively and co-operatively for the long-term benefit of the business."
Member-Owned Structure
As a member-owned organisation, Co-op's approximately seven million members can have a say in how the business is run and can receive money, rewards and offers based on profits made by the group. This unique structure forms part of the company's response to the current situation, emphasising its cooperative principles and member involvement in business decisions.
