Disney has decided to cancel its $1 billion plan to expand its operations in Orlando, Florida due to its ongoing conflict with Gov. Ron DeSantis.
In a memo to employees, Disney announced the cancellation on Thursday. During an earnings call with analysts last week, CEO Bob Iger questioned whether the state wanted Disney to invest more, create more jobs, and pay more taxes.
According to estimates from the Florida Department of Economic Opportunity, the office complex near Walt Disney World would have brought over 2,000 jobs to the region.
Previously, Disney had plans to construct the Lake Nona Town Center to accommodate over 1,000 employees who were set to be relocated from the company’s Southern California offices. Most of these employees were from Disney’s prestigious Imagineering team, which focuses on developing theme park attractions.
The decision to move to Florida in 2021 was announced by Disney’s theme park and consumer products chairman, Josh D’Amaro, who cited the state’s business-friendly environment.
While some employees chose to quit in anticipation of the move, around 200 Disney employees had already relocated from California to Florida.
In his announcement to employees, D’Amaro expressed the importance of the Disney brand’s incredible people and noted that the company is committed to managing the change with care and compassion. He remains optimistic about the direction of their Walt Disney World business.
D’Amaro also stated that Disney still plans to invest $17 billion in its Florida operations within the next decade.
This decision by Disney is the latest development in the ongoing dispute between the company and Gov. DeSantis, who has been pushing his anti-LGBTQ agenda.
Disney began facing opposition from DeSantis after expressing disagreement with his “Don’t Say Gay” bill in March 2022. In March of this year, the company filed a lawsuit against DeSantis for attempting to diminish Walt Disney World’s autonomy through targeted government retaliation.
The cancellation of the Lake Nona Town Center also aligns with Disney’s efforts to reduce costs. In February, the company announced its plans to lay off 7,000 employees in order to cut $5.5 billion from its spending.