The Walt Disney Company (NYSE:DIS) is cancelling plans to build an almost US$1bln corporate campus in central Florida, according to an email sent to employees on Thursday.
The media conglomerate had hoped to use the site to house up to 2,000 employees, including "Imagineers" who design the theme park rides for Disney.
Many of the Imagineering staff – who are California-based – had expressed concerns about having to move to the other side of the US.
“Given the considerable changes that have occurred since the announcement of this project, including new leadership and changing business conditions, we have decided not to move forward with construction of the campus,” Josh D’Amaro, Disney parks chairman, told employees.
DeSantis vs Disney
The California-based firm is currently embroiled in a legal battle with Florida’s Governor, Ron DeSantis.
The politician has been attempting to take back control of the Disney-owned Reedy Creek Improvement District, which houses the Disney World site.
It started after Disney criticised one of DeSantis’ state laws that bans the discussion of sexual orientation and gender identity in Floridian schools.
Last week, in the company’s earnings call, Disney boss Bob Iger questioned whether the Florida government wanted the group to continue to invest in the state.
He claimed Disney provides 75,000 jobs, attracts millions of visitors each year to Disney World and had plans to invest a further US$17bln in its resort in the next decade.
“Does the state want us to invest more, employ more people and pay more taxes, or not?, " Iger asked.
Disney shares wee down close to 1%, at US$92.90, in pre-market trading on Friday.