Travel startup Away announced the resignation of its CEO, Steph Korey, amid mounting pressure over last week's allegations that the company has a toxic workplace culture. Stuart Haselden will take over the post.
According to Business Insider, Lululemon exec Haselden will take over the CEO reigns from Korey starting January 13 and will join both Korey and Away co-founder Jen Rubio in the board of directors circle.
In a statement, Korey heaped praises on Haselden, noting that the business expert can help in strategically exploring growth opportunities for the travel brand. Rubio added that Haselden's addition was just in time since the company has been evolving over the past months.
The news of Korey's exit as CEO came roughly a week after The Verge published an exposé that indicated Away had a toxic work environment, as detailed by some former employees who reportedly experienced the problem.
Avery, a former worker, noted that she joined the startup due to its attractive mission of inclusion. However, Avery reportedly realized that the company's mission was masking the real issue - pushing employees to their limits at work.
The report revealed that Away employees were prohibited from emailing each other or sending private messages as if to keep workers from expressing their struggles during tough or long days.
Surveillance and intimidation were allegedly a norm in the Away workplace, where Slack was used to communicate. Korey reportedly sent feedback that pushed the emotions of employees, with some crying due to the comments she dropped on the organizational platform.
Projects were reportedly criticized on public channels on the platform, and execs reportedly had a similar pattern of "bullying," to a the point where employees were reprimanded each time they didn't respond to messages promptly, regardless of the time or day of the week.
Korey will retain her role in the company as the executive chairman of the board. Rubio will also retain her chief brand officer and president roles. Some industry experts noted that investors may start pushing for more action amid the issue.
According to CNN, Korey took to Twitter on Friday to admit her "mistakes." In her tweet, the Away exec said she was "sincerely sorry" for expressing herself in "ways that hurt the team."
The startup is currently valued at $1.4 billion and specializes in direct consumer travel products. The travel brand said it has already been in search of a CEO replacement since spring.
Away was founded four years ago in New York and since then has blown up into a reasonable and attractive lifestyle and travel brand that focuses on direct sales to millennials and Gen Z consumers.