Walt Disney has dropped plans to relocate thousands of California employees to a new campus in central Florida, according to an internal memo, as a dispute between the company and the state has spilled into court.
The entertainment group will no longer send 2,000 employees to Lake Nona, about 30 kilometers east of Walt Disney World in the southern suburbs of Orlando, where it is building a 1.8 million-square-foot campus that will Opens in 2026.
“Given the dramatic changes that have occurred since the project was announced, including new leadership and the changing business environment, we have decided not to proceed with construction on the park,” Disneyland superintendent Josh Damaro said in a statement. Email employees on Thursday.
Former Disney CEO Bob Chapek floated the idea of building the $900 million campus, and the move would net the company hundreds of millions of dollars in tax breaks.
The company still plans to invest $17 billion in Florida and create “13,000 jobs over the next decade,” Damaro said.
The memo appeared to echo a dispute between Disney and Florida Gov. Ron DeSantis that began last year when Chapek said he opposed Florida’s Educational Parents Rights law, a controversial legislation, which it dubbed the “Don’t Talk Gay” bill rival.
“While some people are excited about the new campus, I know this decision and the circumstances surrounding it will be difficult for others,” D’Amaro said.
The company and the state are engaged in a legal battle over DeSantis taking over Disney’s special tax district in the area, formerly known as the Reedy Creek Improvement District.
Disney, which reinstated former CEO Bob Iger in late 2022 after mounting losses in its streaming business, is executing on plans to lay off 7,000 employees across the company.