Key takeaways:
- Disney has cancelled its proposed $1 billion expansion in Orlando, Florida.
- The decision was announced in a memo to employees from Josh D’Amaro, citing “changing business conditions”.
- The expansion plans were first announced in July 2021, and tensions between Disney and Florida Governor Ron DeSantis had been escalating.
Disney has announced that it will no longer be moving forward with plans to expand its operations in Orlando, Florida. The proposed expansion was estimated to cost $1 billion and would have relocated more than 2,000 California-based employees to the area.
The decision to cancel the expansion was announced in a memo to employees from Josh D’Amaro, chairman of Disney’s parks, experiences and products division. In the memo, D’Amaro cited “changing business conditions” as the reason for the decision.
The expansion plans were first announced in July 2021 by former CEO Bob Chapek, and many Disney employees were not in favor of the move. During an earnings-related call with analysts, D’Amaro questioned whether the state of Florida wanted Disney to invest more, employ more people, and pay more taxes.
The expansion would have included a new employee campus in Lake Nona, Florida, and the relocation of the company’s prestigious Imagineering team, which works to develop theme parks and other attractions.
The cancellation of the expansion comes as tensions between Disney and Florida Governor Ron DeSantis have been escalating. With the return of CEO Bob Iger, Disney has decided to abandon the plans and keep its employees in California. D’Amaro said in the memo that “this was not an easy decision to make, but I believe it is the right one.”
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