Disney is Scrapping Plans For a New $1 Billion Florida Campus

Disney has escalated its conflict with Florida’s Republican Governor Ron DeSantis, resulting in the state losing 2,000 white-collar jobs.

Disney has canceled its $1 billion office complex project in Florida, citing changing business conditions. The decision comes amid an open feud between Disney and DeSantis, who is expected to enter the 2024 GOP presidential race soon.

DeSantis’ spokesperson characterized the cancellation as unsurprising, given Disney’s financial situation, falling market cap, and declining stock price.

The media industry, including Disney, is facing challenges in the advertising environment and a significant writers’ strike. Earlier this year, Disney announced the cut of 7,000 jobs as part of cost-cutting measures.

In addition, Disney confirmed the closure of its Star Wars: Galactic Starcruiser resort at Disney World, just over a year after its opening. The resort will cease operations at the end of September, with Disney working with guests to reschedule reservations.

The Lake Nona campus in Florida’s Orlando area was expected to bring 2,000 jobs, many of which were supposed to be relocated from California.

Orange County Mayor Jerry L. Demings expressed disappointment over the cancellation, attributing it to the lack of an inclusive and collaborative work environment between Florida and the business community.

The state’s Democratic party criticized DeSantis for his alleged personal vendetta against Disney, accusing him of making Florida an anti-business state and causing the loss of jobs and revenue.
The conflict between Disney and DeSantis stems from controversial legislation signed by the governor that restricts the teaching of sexual orientation and gender identity in schools.

The dispute intensified when DeSantis attempted to take over Disney’s special tax district and install a hand-picked board to oversee it. Disney filed a federal lawsuit arguing that these actions violated its First Amendment rights.

Last month, Disney CEO Bob Iger criticized DeSantis’ actions as “anti-business” and “anti-Florida.”
Iger also expressed concerns during an investor call that Florida’s policies could jeopardize Disney’s plans to invest $17 billion in the state and create 13,000 jobs over the next decade. Disney’s decision to cancel the office complex project may be seen as a first step in reconsidering its investment plans in Florida.

Disney’s stock experienced a slight increase following the announcement.