Bob Iger, chairman and chief executive officer of The Walt Disney Company, pauses while speaking during an Economic Club of Recent York event in Midtown Manhattan on October 24, 2019 in Recent York City.
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Disney has abandoned plans to open up a latest worker campus in Lake Nona, Florida, amid rising tensions with the state’s governor.
Citing “changing business conditions” and the return of CEO Bob Iger, Josh D’Amaro, chairman of Disney’s parks, experiences and products division, penned a memo to employees Thursday, announcing that the corporate is not going to move forward with construction of the campus and can not be asking greater than 2,000 California-based employees to relocate to Florida.
“This was not a simple decision to make, but I feel it’s the fitting one,” D’Amaro told employees.
Many Disney employees balked at the corporate’s relocation plans after they were first announced in July 2021 by former CEO Bob Chapek. While some left the corporate, or transitioned to other posts inside Disney that may not require a move to Florida, others held out hope that the plan would fizzle out after a postponement. The campus was originally slated to open in 2022-2023, but was later delayed to 2026.
Disney is headquartered in Burbank, California, but operates a variety of satellite offices across the country and the world.
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D’Amaro said employees who’ve already moved to Florida may have the opportunity to relocate back to California.
“It is evident to me that the ability of this brand comes from our incredible people, and we’re committed to handling this variation with care and compassion,” he said.
Disney’s announcement comes amid a bitter feud between the corporate and Florida Gov. Ron DeSantis. The corporate filed a lawsuit accusing DeSantis and the brand new board members of its special district of carrying out a campaign of political retribution against the entertainment giant.
DeSantis targeted Disney’s special district, formerly called the Reedy Creek Improvement District, after the corporate publicly criticized a controversial Florida bill — dubbed “Don’t Say Gay” by critics — that limits discussion of sexual orientation and gender identity in classrooms.
The special district has allowed the entertainment giant to effectively self-govern its Orlando parks’ operations for a long time. The district was ultimately left intact, but its five-member board was replaced with DeSantis picks and renamed the Central Florida Tourism Oversight District.
Disney filed its suit in late April after the brand new board voted to undo development contracts that the corporate said it struck to secure its investments. The corporate has since updated that lawsuit to incorporate newly passed laws targeting its monorail system as further evidence of retaliation by the governor.
Iger has publicly lambasted DeSantis and the Florida government, noting that Disney has created hundreds of indirect jobs, brings around 50 million visitors to Florida every yr and is the state’s largest taxpayer.
Stickers and apparel promoting Florida Governor Ron DeSantis sit on a table before a book tour event on the North Charleston Coliseum on April 19, 2023 in North Charleston, South Carolina.
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In an announcement later Thursday, representatives for DeSantis called the choice to nix the Lake Nona campus “unsurprising.”
“Disney announced the potential for a Lake Nona campus nearly two years ago. Nothing ever got here of the project, and the state was unsure whether it might come to fruition,” DeSantis’ office said within the statement.
D’Amaro reiterated in his memo that the corporate still plans to take a position $17 billion in Florida over the subsequent 10 years, including the addition of around 13,000 jobs. The corporate currently employs greater than 75,000 people within the state.
Disney declined to supply specific updates on that investment, but has previously announced plans to update park attractions, expand existing parks and add more cruise ships to its fleet in Florida.
“I remain optimistic concerning the direction of our Walt Disney World business,” D’Amaro told employees.