Current non-executive director Brian Wilson is taking over as interim chairman until a permanent replacement is found.
Lawwell’s decision to depart the Parkhead club on December 31 comes amid on-going protests from a large, disgruntled section of the Hoops support who criticised the club’s transfer activity in the summer and poor performances this season, culminating in Sunday’s 3-1 Premier Sports Cup final defeat by St Mirren at Hampden Park.
“It is with sadness that I announce my decision to stand down as chairman,” Lawwell said in an emotional statement on the club’s official website.
“I believe that my 18 years as chief executive and three years as chairman have shown my ability to meet and overcome challenges on many fronts, but abuse and threats from some sources have increased and are now intolerable.
“They have dismayed and alarmed my family. At this stage in my life, I don’t need this. I cannot accept this and so I leave the club I have loved all my life.”
Lawwell joined Celtic as chief executive in 2003 and served the club for 18 years in this role.
He returned as non-executive chairman in 2023, overseeing board affairs.
Cash-rich Celtic are the dominant force in Scottish football and have won 13 out of the last 14 league titles along with numerous domestic cup triumphs.
However, Lawwell, non-executive director and principal shareholder Dermot Desmond, and chief executive Michael Nicholson have been the target of fans’ ire in recent months and “sack the board” chants have been the soundtrack to most Hoops games this season.
“The motivations and aims of these detractors can be investigated by others,” said Lawwell.
“I prefer to look back on my career at Celtic with deep gratitude and satisfaction.
“My time at the club has brought joy to someone whose memories as a Celtic fan include standing as a schoolboy on the terraces as the European Cup was paraded at Celtic Park on that magical night in 1967.
“I have subsequently watched some great European nights at Paradise and am proud that the club has played group-stage football in all but two of the last 21 years while also enjoying domestic dominance.
“I also take great pleasure in the continuing and ever more substantial impact of Celtic FC Foundation.
“The club’s Foundation impacts so many lives in the Celtic Family and far beyond.
“We are more than a football club and the Foundation is the most obvious evidence of this truth.
“Our achievements were all made possible by a dedicated workforce and a fervent support binding together. I am deeply proud and privileged to have been part of that.
Peter Lawwell and Dermot Desmond, Celtic’s chief shareholder
“My life at the club has included dramatic ups and downs in football but they have also given me the experience, drive and desire which I will take on to my next project, whatever and wherever that may be.
“My thanks go to my many colleagues over the years who have supported me, and I am grateful to the coaches and players who delivered this era of remarkable and historic success.”
Celtic chief executive Michael Nicholson declared Peter Lawwell’s resignation a “sad day” for the club as he that three of his colleagues were “assaulted” after Sunday’s Hampden defeat.
Giving his reaction to Lawwell’s decision, Nicholson told Celtic TV: “I’m hugely disappointed. It’s a sad day for Celtic. I think it’s sad because one of our colleagues has felt the need to stand down from his role.
“Peter’s a Celtic fan first and foremost, but he’s been a great colleague, a great leader for Celtic, both as chief executive and more recently as chairman, as we’ve enjoyed great success on and off the pitch.
“But it’s a sad day for Celtic because of the reasons behind Peter’s decision to stand down.
“I know it’s a decision that weighed heavily on him. It’s not an easy decision, but I think he’s made the decision for himself and for his family because of the abuse and because of the threats that were directed towards him.
“Those are behaviours that we’ve seen from perhaps a very small minority of the Celtic support, but those are behaviours that are completely unacceptable.
“Most recently, we had a situation where three of our colleagues were assaulted at Celtic Park on Sunday night after the match.
“As I say, these behaviours and conduct are completely unacceptable. For me, they’re not Celtic. They don’t sit with the values of Celtic supporters and the Celtic family.
“As a board, it strengthens our resolve to do the right thing for Celtic and to take this club forward together for the future.”