Purpose – This study, using conservation of resources (COR) theory, aims to investigate the relationship between despotic leadership and career development, exploring a mediated-moderated model of anxiety and power distance. It seeks to uncover the psychological and cultural mechanisms through which despotic leadership perpetuates career stagnation. Design/methodology/approach – This study used a cross-sectional survey design, collecting data from 205 employees across diverse industries in the UAE. Partial least squares structural equation modelling was used to test the proposed hypotheses within a mediated-moderated model. Findings – The results reveal that despotic leadership significantly undermines employee career development while exacerbating anxiety. Anxiety partially mediates the relationship between despotic leadership and career advancement. In addition, power distance moderates this relationship, with the negative impact of despotic leadership being weaker in high power-distance cultures and stronger in low power-distance contexts. Originality/value – This study contributes to destructive leadership literature by integrating COR theory to explain how despotic leadership impedes career growth. It highlights the dual roles of anxiety as a psychological mechanism and power distance as a cultural contingency, offering insights into career development barriers. The findings equip organisations with actionable strategies to mitigate the damaging effects of despotic leadership, particularly in culturally diverse workforces.