Disney increased the stakes in its ongoing dispute with Florida's Governor, Ron DeSantis, on Thursday, leading to an estimated loss of 2,000 potential jobs for the state. The entertainment giant decided to abandon its plans for a $1 billion office complex in Florida, attributing the decision to shifting business circumstances, as per information provided by a company representative.
This decision emerges as Disney publicly disagrees with Governor DeSantis, who is anticipated to officially join the 2024 GOP presidential race soon.
The Governor's spokesperson stated it wasn't unexpected that Disney would terminate the project due to the company's financial issues, decreasing market value, and falling share prices.
Disney, like the wider media sector, is dealing with difficult industry conditions and an extensive writers strike. Earlier this year, it disclosed plans to reduce 7,000 positions as a part of its cost-saving measures.
Furthermore, Disney verified on Thursday that it would cease operations of its Star Wars: Galactic Starcruiser resort at Disney World just over a year after it opened.
The crowd-pleasing resort "will make its final journey" at the end of September, Disney revealed, adding that they're coordinating with visitors to reschedule reservations for later in the year. The Lake Nona campus, located in the greater Orlando area of Florida, was predicted to create 2,000 jobs, with many roles expected to be transferred from California.
Orange County Mayor Jerry L. Demings said, "It's regrettable that Disney will not be progressing with the construction of the Lake Nona campus. Yet, this is the outcome when there is a lack of an inclusive, cooperative atmosphere between Florida's state and the business sector. We will persist in collaborating closely with our esteemed partners at Disney." The state's Democratic party leader criticized the Governor's "irrational personal grudge against Disney" for causing Florida to lose 2,000 jobs and significant additional income.
Florida's Democratic Party Chair, Nikki Fried, stated, "DeSantis has resolutely transformed Florida into an anti-business state. Sadly, today's news isn't surprising for those of us experiencing his ruthless regime, and Floridians are already bearing a substantial cost."
Disney and DeSantis have been at odds over controversial legislation restricting the instruction of sexual orientation and gender identity in schools, a law critics have dubbed the "Don't Say Gay" law.
The disagreement has escalated in recent times after DeSantis' attempts to gain control over the company's special tax district, dictating regulations for Disney World and adjacent areas. DeSantis has sought to install a chosen board to supervise the district. Prior to the state government's selection of the board in February, Disney had reached agreements with the departing board that curtailed the influence of DeSantis' nominees.
The two parties are presently engaged in a legal battle, with Disney asserting in a federal lawsuit that DeSantis and Florida's actions infringed upon its First Amendment rights to free speech.
Disney CEO Bob Iger communicated to shareholders at its annual meeting last month that he believed DeSantis' actions against Disney, one of the state's biggest employers, were "anti-business" and "anti-Florida."
In a call with investors following its quarterly earnings report, Iger insinuated that DeSantis and the Florida legislature were jeopardizing the company's plans to pump $17 billion into Florida and generate 13,000 jobs over the coming decade.
Iger posed a rhetorical question during that investor call, asking, "Does the state wish for us to invest more, employ more individuals, and contribute more taxes, or not?"
After these remarks, Disney did not provide any comments on whether it would alter its investment plans in Florida. The announcement made on Thursday might be an initial indication of changes to those plans.
Q&A Section:
Q: Why is Disney halting its $1 billion office complex project in Florida?
A: Disney cited "shifting business conditions" as the reason for its decision to halt the office complex project in Florida. This decision comes amid an ongoing disagreement with Florida's Governor, Ron DeSantis.
Q: How will Disney's decision impact job opportunities in Florida?
A: Disney's decision to abandon the office complex project in Lake Nona, Florida, could potentially lead to the loss of 2,000 job opportunities. Many of these roles were expected to be transferred from California.
Q: What is Disney's contention with Governor DeSantis?
A: The dispute between Disney and Governor DeSantis largely centers around controversial legislation that restricts the teaching of sexual orientation and gender identity in schools. Tensions have also escalated over DeSantis' attempts to gain control over the company's special tax district, dictating regulations for Disney World and adjacent areas.
Q: What is the status of the Star Wars: Galactic Starcruiser resort?
A: Disney has confirmed that the Star Wars: Galactic Starcruiser resort at Disney World will cease operations at the end of September, just over a year after its opening. The company is working with guests to reschedule reservations for later in the year.
Q: What is Disney's proposed investment in Florida over the next decade?
A: Disney's proposed investment in Florida over the next decade involves an investment of $17 billion, which is expected to create approximately 13,000 jobs. However, following its recent conflicts with Governor DeSantis, there might be changes to these plans.
