Despotic leadership builds adverse emotions and turnover intentions in the employees of an educational organization. This study investigated the relationships among despotic leadership, toxic workplace environment, cognitive distraction, and employee turnover intention. This study is based on social exchange theory (SET), social psychology theories of behavioral intention formation (such as the theory of reasoned action and the theory of planned behavior), and of the despotic leadership style. A survey questionnaire containing 28 items was completed by 240 faculty members from four Chinese universities. The responses were documented on a seven-point Likert scale. We applied PLS–SEM (partial least squares structural equation modeling) to measure the effects. The outcomes showed that despotic leadership influenced employee turnover intention in academic institutions. Toxic workplace environment correlates with employee turnover intention. Cognitive distraction also correlates with employee turnover intention. Toxic workplace environment mediates the relationship between despotic leadership and employee turnover intention. Similarly, cognitive distraction mediates the relationship between despotic leadership and employee turnover intention. The study concluded that despotic leadership, toxic workplace environment, and cognitive distraction might increase employee turnover intention. This study adds to the literature in the field of despotic leadership, toxic workplace environment, cognitive distraction, and employee turnover intention in academic institutions. Furthermore, it offers valuable and practical implications along with recommendations for future research.