This study explores the impact of workplace toxicity on employees’ well-being, creativity, and internal resignation in higher education institutes in Saudi Arabia, considering its relevance to the ambitions of Vision 2030. Based on a three-wave data collection, survey responses from 474 employees, including faculty members and administrative staff from top-ranking institutions, were collated. Partial least squares-structural equation modeling (PLS-SEM) was used for hypothesis testing. The research presents that workplace toxicity significantly reduces employee’s well-being and creativity, which mediates their influence on inner resignation. This study also offers unique insights by highlighting these association within the context of Saudi higher education. It demonstrates the requirement for inclusive and psychologically safe environments policies to decrease workplace toxicity and inner resignation. These findings have implications for institutional leaders and policymakers to support employees’ well-being and employee creativity in achieving sustainable innovation and organizational resilience aligning with the Vision 2030 goals of Saudi Arabia.