Co-op Defends Corporate Culture Amid Reports of 'Toxic' Workplace Environment
The Co-op has issued a robust defence of its corporate culture and the conduct of its senior executives, following BBC reports that managers have complained of a "toxic" working environment characterised by fear and alienation. The grocery and services chain stated it does not believe these criticisms "represent the views of our broader leadership and colleagues."
Letter of Complaint and Allegations
According to the BBC, a letter claiming to reflect the views of a large number of senior managers was sent to the chair and another board member last month. This correspondence raised serious complaints about a culture of "fear and alienation", with some senior staff members reportedly feeling scared to voice concerns about business decisions to management, including chief executive Shirine Khoury-Haq.
The broadcaster also reported hearing from senior managers who felt intimidated or afraid to speak up to most senior executives, highlighting a perceived lack of openness and transparency within the organisation.
Co-op's Official Response
Addressing these concerns directly, a spokeswoman for Co-op said: "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."
Organisational Changes Post-Cyberattack
The letter reportedly raised concerns about organisational changes at Co-op following a major cyberattack in 2025, which impacted the group's sales by more than £200 million. As part of a new strategy, Co-op created a group commercial and logistics (GCL) division, consolidating several commercial teams into a single unit and resulting in a senior leadership shake-up.
The recovery from the cyberattack was viewed as an opportunity to make structural and managerial changes to strengthen the business for the future. However, the BBC's report indicated that senior managers told the broadcaster the reorganisation was partly responsible for weakening business performance and that the impact of the cyberattack could no longer be blamed for ongoing issues.
Staff also reportedly warned that the changes would cause confusion among suppliers and disruption to business operations.
Co-op's Defence of Decisions
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. Given the challenging nature of these events, we had to make many difficult and decisive choices."
The company asserted that all its businesses, including the food division, have now seen market share return to pre-cyberattack levels. It added: "Equally, GCL was established to significantly grow at scale our buying group and the opportunities from that are already driving positive results."
Co-op emphasised that "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."
Union Involvement and Member Ownership
The Union of Shop, Distributive and Allied Workers (Usdaw), which represents store staff and other workers at the Co-op, confirmed that concerns have also been raised by union members at the mutual. Jayne Allport, national officer at Usdaw, said: "Usdaw has also been critical of some of the decisions made by the business. Our reps working in stores, logistics and funeralcare continue to raise concerns from union members with senior management to seek solutions."
She encouraged any Co-op colleagues afraid to speak out to join Usdaw, promising: "We will speak on your behalf."
Co-op is a member-owned organisation, meaning its approximately seven million members can have a say in how the business is run and can receive money, rewards, and offers based on profits. This structure adds a layer of accountability, as members expect transparency and ethical management practices from their cooperative.
