Walt Disney
is abandoning plans to build a sprawling business campus near Orlando and relocate thousands of employees to Florida, according to a memo to staff viewed by Barron’s.
Josh D’Amaro, chairman of Disney parks, experiences, and products, said in the memo that the company no longer plans to build the Lake Nona campus due to “considerable changes that have occurred since the announcement of this project, including new leadership and changing business conditions.”
The project was announced in 2021, while Bob Chapek, who was fired in November and succeeded by his predecessor Bob Iger, was still chief executive. The Wall Street Journal reported in July 2021 that the project’s capital investment could have reached $864 million, though the firm was estimated to be in line for $570 million in tax breaks over 20 years.
The company is also closing Galactic Starcruiser, its Star Wars-themed luxury hotel, effective in late September, it said in a statement on its website.The two-night experience costs nearly $5,000 for a couple and includes admission to Disney’s Hollywood Studios theme park, through its Star Wars section.
Since the Florida project was announced, the company has become embroiled in a messy legal and political feud with Florida Gov. Ron DeSantis. After the company spoke out against a piece of legislation that bans discussions of sexual orientation in elementary schools, the governor signed a bill that replaced the board of a special district that let Disney self-govern its Florida resort and theme parks with outside appointees.
Disney has accused the governor of retaliating against it for its stance on the legislation, which critics have called the “Don’t Say Gay” bill. The DeSantis administration has argued the firm had no right to “operate its own government or maintain special privileges not held by other businesses in the state.”
D’Amaro wrote that the company will no longer ask employees to relocate to Florida. He added that the firm will speak with employees who have already moved to discuss the possibility of moving back to California.
“While some were excited about the new campus, I know that this decision and the circumstances surrounding it have been difficult for others,” D’Amaro wrote in the memo.
Walt Disney stock (ticker: DIS) closed up 1.1% at $93.76 on Thursday.
Write to Connor Smith at [email protected]
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