JRSK inc. dba Away saw the resignation of Chief Executive Officer Steph Korey after an expose by The Verge exposed a "toxic" workplace culture and questionable behavior by Korey.
Korey, a co-founder of the luggage company Away, stepped down amid a wave of controversy stemming from an article published on December 5 by The Verge that exposed merciless workplace practices, including targeting employees on the workplace app Slack (NYSE: WORK) and publicly lambasting them. Korey initially responded to the expose by apologizing and claiming that she would work to improve conditions at Away but would step down less than a week later amid the monumental backlash stemming from the report.
Korey's apologies were poorly received among employees and the general public, with many feeling that her apologies were insincere. The release of The Verge's report and the subsequent posting of exchanges between Korey and employees on social media caused a great deal of public backlash, with some consumers returning Away products or canceling orders to show solidarity with the company's employees.
The Verge's expose revealed a harrowing workplace culture built on a lack of privacy between employees and management. Employees were required to use Slack, a workplace social networking app, to communicate with one another. All conversations were public and were frequented by upper management, including Korey. As previously mentioned, Korey often took to harassing employees on Slack, belittling them for mistakes and threatening to step-in frequently. Korey and upper management frequently required employees to work long hours and would often shoot down requests for time off. Unsurprisingly, this caused a high turnover rate within the company and caused a moral problem amongst Away's workforce.
On Monday, Away announced that Lululemon (NASDAQ: LULU) Chief Operations Officer Stuart Haselden had been hired to replace Korey. "With the immense growth of the Away brand, the complexities of our business have evolved as well," said Away Co-Founder and President Jen Rubio, addressing Haselden's hiring, claiming that it was part of the company's long-term plan for moving forward. Haselden is set to assume the role of CEO starting in January. Despite stepping down as CEO, Korey will remain with the company as executive chairman, retaining her spot on the Board of Directors.