The move follows an investigation that cited 14 former employees who described a "cutthroat culture" at the company, according to Business Insider.
Korey reportedly demanded workers work almost constantly and pressured them against taking time off.
On Monday, Lululemon executive Stuart Haselden was hired as the company's new CEO.
Korey will assume the role of executive chairman.
In a statement to FOX business, Korey said, “Over the past eight months, I led the recruiting process that led us to bringing on Stuart, and I’m so thrilled for him to join the company as Away’s CEO. Stuart is a deeply experienced leader and operator who will be transformative for Away’s next phase of growth. I am looking forward to stepping into my new role as executive chairman.”
Last week, Korey apologized for her behavior while leading Away.
"I can imagine how people felt reading those messages from the past, because I was appalled to read them myself. I am sincerely sorry for what I said and how I said it," Korey said in a statement emailed to Business Insider. "It was wrong, plain and simple."