Disney cancels $1 bn campus project in Florida. Why? Know here
In a move that surprised many, The Walt Disney Company has decided to skip out on its plan for a near $1 billion corporate campus in Florida. This unexpected U-turn happened right in the middle of a legal scrap with Florida’s Governor, Ron DeSantis.
Why Did Disney Drop the Idea?
Back in 2021, Disney announced with much fanfare its plans to set up a shiny new corporate campus in Lake Nona, Florida. This place was meant to be the new home for about 2,000 employees, including their talented Imagineering team – the clever folks who dream up those fantastic theme park rides, The Guardian. But, citing a change in the business winds and a switch-up in leadership, Disney thought it best to reconsider the move. Disney’s Theme Park and Consumer Products Chairman, Josh D’Amaro, said that the cancellation was due to “changing business conditions,” The Guardian reported.
What’s the Damage to Florida’s Wallet?
Disney’s project was expected to pour a hefty $864 million into Florida’s economy. Already a major employer with a 75,000 strong workforce in Florida, Disney had also drawn up plans to invest an additional $17 billion in expanding the Walt Disney World resort over the next decade. That’s a lot of jobs – 13,000 to be exact.
What’s the Tiff Between Disney and Governor DeSantis?
Disney and Governor DeSantis have been at loggerheads since 2022, when Florida introduced a controversial law. The Parental Rights in Education Act, also known as the “Don’t Say Gay” bill prohibits the teaching of sexual orientation and gender identity in kindergarten through third grade.
Disney initially stayed silent on the bill, but after it was passed, CEO Bob Chapek issued a statement criticizing it. “We are committed to creating a more inclusive world for all, and we believe that this law is a step in the wrong direction,” CNBC reported.
This led to a backlash from DeSantis and other Republicans, who accused Disney of being “woke” and “out of touch.”
Disney has since doubled down on its criticism of the bill, and the two sides are now embroiled in a legal battle.
“It is unfortunate that Disney will not be moving forward with construction of the Lake Nona campus. However, these are the consequences when there isn’t an inclusive and collaborative work environment between the state of Florida and the business community,” Orange County Mayor Jerry L. Demings said in a statement.
Will Disney Stick Around in Florida?
Even with the Lake Nona project dropped and the ongoing legal rumble with Governor DeSantis, Disney isn’t planning on washing its hands of Florida. Josh D’Amaro, the big boss of Disney’s parks, has confirmed plans to invest $17 billion and create 13,000 jobs in Florida over the next ten years.
Any Other Changes Afoot at Disney?
Disney’s not just cancelling the Lake Nona project. They’ve also decided to shutter their immersive “Star Wars: Galactic Starcruiser” luxury hotel in Orlando. Plus, they’ve got their eye on cutting costs by $5.5 billion across their entertainment and parks businesses. Seems like Disney’s tightening its belt.