Disney has deserted plans to open up a new employee campus in Lake Nona, Florida, amid rising tensions with the state’s governor.

Citing “altering enterprise circumstances” and the return of CEO Bob Iger, Josh D’Amaro, chairman of Disney’s parks, experiences and merchandise division, penned a memo to workers Thursday, asserting that the corporate won’t transfer ahead with development of the campus and can now not be asking greater than 2,000 California-based workers to relocate to Florida.

“This was not a simple determination to make, however I imagine it’s the proper one,” D’Amaro informed workers.

Many Disney workers balked on the firm’s relocation plans once they had been first introduced in July 2021 by former CEO Bob Chapek. While some left the corporate, or transitioned to different posts inside Disney that will not require a transfer to Florida, others held out hope that the plan would fizzle out after a postponement. The campus was initially slated to open in 2022-2023, however was later delayed to 2026.

Disney is headquartered in Burbank, California, however operates quite a few satellite tv for pc places of work throughout the nation and the world.

D’Amaro stated workers who’ve already moved to Florida might be able to relocate again to California.

“It is evident to me that the ability of this model comes from our unimaginable individuals, and we’re dedicated to dealing with this alteration with care and compassion,” he stated.

Disney’s announcement comes amid a bitter feud between the corporate and Florida Gov. Ron DeSantis. The company filed a lawsuit accusing DeSantis and the new board members of its particular district of finishing up a marketing campaign of political retribution towards the leisure large.

DeSantis focused Disney’s particular district, previously known as the Reedy Creek Improvement District, after the corporate publicly criticized a controversial Florida invoice — dubbed “Don’t Say Gay” by critics — that limits dialogue of sexual orientation and gender id in lecture rooms.

The particular district has allowed the leisure large to successfully self-govern its Orlando parks’ operations for many years. The district was in the end left intact, however its five-member board was changed with DeSantis picks and renamed the Central Florida Tourism Oversight District.

Disney filed its swimsuit in late April after the new board voted to undo improvement contracts that the corporate stated it struck to safe its investments. The firm has since up to date that lawsuit to incorporate newly handed laws focusing on its monorail system as further evidence of retaliation by the governor.

Iger has publicly lambasted DeSantis and the Florida authorities, noting that Disney has created hundreds of oblique jobs, brings round 50 million guests to Florida yearly and is the state’s largest taxpayer.

Representatives for DeSantis did not instantly return request for touch upon Disney nixing the campus.

D’Amaro reiterated in his memo that the corporate nonetheless plans to take a position $17 billion in Florida over the following 10 years, together with the addition of round 13,000 jobs. The firm presently employs greater than 75,000 individuals within the state.

Disney declined to offer particular updates on that funding, however has beforehand introduced plans to replace park points of interest, increase present parks and add extra cruise ships to its fleet in Florida.

“I stay optimistic in regards to the path of our Walt Disney World enterprise,” D’Amaro informed workers.