To Hell with Babe Ruth - S2-E2
Continuity mistake: When Nagata breaks into the boarded-up house, he walks through a doorway full of cobwebs, covering his black suit with white dust and webs. But when the shot changes, his suit is suddenly perfectly clean again. (00:10:00)
Answer: He was fired. He never really appreciated his character. He felt Kono was portrayed as a big dumb Hawaiian and that the stereotype was racist. He also felt underutilized. He was fired after a heated argument with the show's publicist regarding his character. It seems there's not much details given regarding the incident or the firing, so it's seems possible he upset the show's producers as well.
Bishop73
No he said something derogatory about one of the Jewish producers that's why he was fired.