ORLANDO, Fl. – The Walt Disney Co. announced on Wednesday that it is withdrawing from its plans to build a new corporate campus in Florida. The company cited changing business conditions and new leadership as the main reasons behind the sudden move. However, numerous reports suggest that the feud between Disney and Governor Ron DeSantis was the primary factor that led to the cancellation.
Disney was set to build a new college campus in Lake Nona, Orlando, which would have cost the company around $1 billion. The new corporate center would have seen more than 2,000 Disney employees relocate from its California headquarters to Orlando. The plan initially received positive reactions from the Florida Government which praised the new investment and creation of jobs.
However, the plan received widespread criticism from many Americans and LGBTQ+ organizations around the country that saw the act as promoting hate and discrimination against LGBTQ+ students. Additionally, the project began facing problems and received a backlash from Disney’s disgruntled employees, who felt unfairly forced to make the move to Florida.
The dispute between Disney and Governor DeSantis grew even stronger last year when the state of Florida banned classroom instruction on sexual orientation and gender identity in schools, leaving the Walt Disney Co. in a tough position that it deemed discriminatory. “Disney strongly opposes any legislation that could increase discrimination and violence against LGBTQ+ people, especially in this vulnerable time, when those in the community may be isolated or quarantined with their abusers”, said the company in a statement released early last year.
Disney’s lawsuit against the governor stated that the legislation was a result of the company’s rightful stance against the bill and a retaliatory measure from the governor to strip Disney of its special privileges. Disney’s tactics appeared to have succeeded, as a judge prevented the state from enforcing the law on the grounds that it is likely unconstitutional.
On Wednesday, after several weeks of rumors and speculation, Disney confirmed that it would no longer be moving forward with the corporate center’s plans, citing changing business conditions and new leadership. While hundreds of employees who had already relocated could choose to stay in Florida, Disney’s decision to halt the project sends a clear message to Governor DeSantis that the corporation will not stand by bills that restrict access to education and create hate against a particular group.
Governor DeSantis’s office released a statement on Wednesday in which it blamed the company’s financial straits rather than the ongoing disputes between the two sides. “We had high hopes that Disney would invest and develop in our state, but we understand that they have to do what makes sense for their bottom line”, the statement read.
Despite the cancellation of the Lake Nona campus project, Disney CEO Bob Chapek has affirmed the company’s commitment to continued growth and expansion. Last week, during the company’s earnings call, Chapek outlined plans to invest $17 billion in new projects and create over 13,000 jobs over the next decade, regardless of other projects being postponed.
Disney’s withdrawal sends a clear message that companies are not willing to go along with policies that could be deemed discriminatory or harmful to their employees. Though it is unclear what the next steps for Disney are, this move sets a precedent for future corporate relations with Florida.
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