Disney has scrapped opening a $900 million office park in Florida as the ongoing court battle with the state’s governor Ron DeSantis rumbles on.
The entertainment giant also canceled its highly anticipated Star Wars: Galactic Starcruiser experience at Walt Disney World.
The planned corporate campus in Lake Nona, Orlando, has aimed to relocate over 2,000 employees from Disney’s theme parks division.
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Disney’s head of Parks, Experiences and Products division, Josh D’Amaro, said in an email employees will no longer be asked to relocate from Southern California.
Those who have already moved to Florida will be given the option to return.
The company is having a fiery relationship with Florida’s state lawmakers, particularly Gov. DeSantis.
Business conditions, such as significant job cuts and budget reductions at Disney, have also played a role in these decisions.
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Disney is currently implementing a reduction in headcount by 7,000 and cutting $5.5 billion from content and administrative budgets.
The company is facing growing tensions with the state of Florida as Gov. DeSantis criticized Disney for publicly opposing a sex-education bill that he had proposed.
He then sought to take control of the Reedy Creek tax district, which grants Disney self-governance over its theme park and hotel areas.
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Disney filed a lawsuit against the state in response.
In April, Disney announced its plans to invest $17 billion in Florida over the next decade, creating 13,000 new jobs.
During the company’s annual meeting, former CEO Robert Iger criticized DeSantis’ actions, describing them as “antibusiness” and “anti-Florida.”
The cancellation of the Lake Nona project and the closure of the Star Wars attraction have disappointed local government and tourism officials in Orange County.
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