Disney (DIS) has announced the cancellation of its plans to relocate a significant number of California-based employees to Florida, citing an ongoing feud with Florida Governor Ron DeSantis. An internal memo obtained by Yahoo Finance revealed that Josh D’Amaro, chairman at Disney Parks, Experiences, and Products, informed employees that the company would no longer proceed with the construction of a new campus in the Lake Nona region of Orlando.
D’Amaro explained that the decision was influenced by various factors, including changes in leadership and evolving business conditions. He acknowledged the difficulty of the choice but emphasized its appropriateness. Disney will no longer require employees to relocate and those who have already made the move will be individually consulted to discuss their situations, including the possibility of returning.
Under the leadership of then-CEO Bob Chapek, Disney initially unveiled the relocation plans in July 2021, announcing their intention to establish an employee campus slated to open between 2022 and 2023. However, due to various factors, the project experienced delays, ultimately pushing the anticipated opening to 2026.
D’Amaro expressed his belief in the significance of Disney’s talented workforce and assured employees that the transition would be handled with care and compassion. He maintained optimism regarding the future of Walt Disney World business, highlighting plans to invest $17 billion and create 13,000 jobs over the next decade.
The recent development follows a highly publicized clash between Disney and Florida Governor DeSantis. The dispute stemmed from what many perceive as a politically motivated response by Disney to the “Don’t Say Gay” law, which prohibits teaching about sexual orientation and gender identity in kindergarten through third grade.
In 2022, the former CEO of Disney, Bob Chapek, broke his initial silence on the matter and publicly criticized the “Don’t Say Gay” law during the company’s annual shareholder meeting.
In response to Disney’s actions, Governor DeSantis signed a bill granting him control over the company’s longstanding special tax district, formerly known as Reedy Creek. The political tension between the two parties persists, with Disney filing a lawsuit against DeSantis, accusing him of targeted retaliation.
In turn, the governor’s hand-selected Central Florida Tourism Oversight District board retaliated with a countersuit, alleging secretive agreements favoring Disney.
A spokesperson from Governor DeSantis‘ office, commenting on the project cancellation, mentioned that Disney’s Lake Nona campus was initially announced two years ago but had faced uncertainties and doubts about its realization. The spokesperson attributed Disney’s decision to restructure and cancel unsuccessful ventures to the company’s financial challenges, declining stock prices, and shrinking market capitalization.
The governor’s office previously criticized Disney, claiming that its actions reflected a desperate attempt to maintain special privileges while disregarding the will of the people of Florida, as expressed through their elected representatives.
Disney CEO Bob Iger has consistently defended the company’s position and denounced Governor DeSantis’ practices. During Disney’s second-quarter conference call, Iger questioned whether the state wanted the company to expand its investments, create more jobs, and contribute more taxes.
This cancellation of relocation plans marks another development in the ongoing conflict between Disney and the Florida governor, with the full impact on both parties yet to unfold.
