Lee believes that such significant changes behind the scenes will have a negative effect on the Magpies.
"It's official — Newcastle United are once again a laughing stock," Lee told the Northern Chronicle.
"Newcastle always seem to shoot themselves in the foot. It is one step forward, two steps back.
"To bring Joe Kinnear in above Alan Pardew's head is just a crazy decision. Nobody would have done what Newcastle have done in the last week or so."
Newcastle begin the new Premier League campaign with a trip to Manchester City on August 17.