Disney has announced plans to scrap a new $1billion Florida campus amid rising tensions with Ron DeSantis.
The company would have built a new corporate campus and send nearly 2,000 employees to The Lake Nona initiative in Orlando, US, but the entertainment giant has decided to axe the project.
The project was supposed to involve the relocation of workers from the Southern California department Imagineering, which works with Disney’s movie studios to develop theme park attractions.
Some of the workers had already moved out to Orlando in preparation for the new campus but were informed in an email the campus will no longer be built.
In addition, the company said it won't be asking its employees to move out after the decision to scrap the $1billion corporate campus and send 2,000 workers to Orlando was reversed by business chiefs.
The Lake Nona project had initially been scheduled to open in 2024 but in July last year Disney delayed move to 2026, blaming construction delays.
Disney announced the decision through an internal email after Josh D'Amaro, the head of Disney's Parks, Experiences and Products division, said the company's decision was the result of "considerable changes".
The Lake Nona initiative had previously been driven by former CEO Bob Chapek, who was let go by Disney last year, with Mr D'Amaro stating the company was under "new leadership and changing business conditions".
In an email to employees he said: "This was not an easy decision to make, but I believe it is the right one."
The decision to reverse the huge project comes amid a feud with Florida governor Ron DeSantis - with the Republican-led government and Disney both suing each other in recent weeks.
The Lake Nona campus, which is around 20 miles from Disney World near the Orlando International Airport, was not favoured by Disney chief executive Bob Iger, who came out of retirement to replace the sacked Mr Chapek last year.
Mr Iger reportedly told colleagues moving the department far away from Disney's movie studios did not make sense claiming "creative teams need to be together."
The move also comes after Mr DeSantis and Disney have been disagreeing for the last year over a special tax district for the company.
Disney, who are the largest state's taxpayer, have been hit with a serious of hostile measures by Florida including the decision to end its ability to self-govern the resort.
