Global Courant 2023-05-19 00:34:51
Disney is scrapping plans to move 2,000 jobs to Florida amid a deepening legal battle with Florida Governor Ron DeSantis.
Walt Disney Co is scrapping plans to move 2,000 jobs to Florida, in part because of “changing business conditions” in the state, according to an email to employees seen by Reuters on Thursday.
The announcement came amid an ever-growing legal battle between Florida Governor Ron DeSantis and the entertainment giant.
Disney parks chief Josh D’Amaro said “changes in leadership” and “changing business conditions” led Disney to rethink its 2021 plan to move employees, including the Imagineers who design theme park rides, to a new facility. campus at Lake Nona. According to the Orlando Sentinel, Disney would spend a whopping $864 million on the project.
The original decision to move employees to Florida from California had led to complaints from many employees who did not want to move across the country.
“Given the significant changes that have occurred since the announcement of this project, including new leadership and changing business circumstances, we have decided not to proceed with construction of the campus,” D’Amaro wrote. “This was not an easy decision, but I believe it is the right one.”
D’Amaro also pointed out the situation of employees who have already moved. “For those who have already moved, we will talk to you individually about your situation, including the possibility of relocating you.”
Bitter fight
Disney and DeSantis have been locked in an increasingly acrimonious battle that began in March 2022, when then-Disney CEO Bob Chapek criticized Florida legislation that would limit discussion of gender identity and sexuality in elementary schools.
DeSantis, who is expected to announce soon that he will be pursuing the Republican nomination for US president in 2024, then moved to strip Disney of its longstanding self-governing power over Walt Disney World in Orlando. The governor argued that “Wake Disney” should not receive special treatment in the state.
Disney called the move political retaliation for what should be freedom of speech and sued the state last month to have the steps reversed.
A week ago, Disney CEO Bob Iger noted during a call to investors about quarterly results that the company employs more than 75,000 people in Florida, attracts millions of visitors to Disney World annually, and plans to invest $17 billion to take refuge in the next decade.
“So I’m going to end… by asking one question,” Iger said during the conversation. “Does the state want us to invest more, hire more people and pay more taxes, or not?”
Iger’s predecessor announced plans in July 2021 to move jobs from Southern California to a new facility in central Florida, citing the “business-friendly climate.” While Disney never disclosed the value of its investment, the Los Angeles Times reported that it would receive nearly $580 million in tax credits over the next 19 years.
“I remain optimistic about the direction of our Walt Disney World business,” D’Amaro wrote. We have plans to invest $17 billion and create 13,000 jobs over the next ten years. I hope we succeed.”
