Florida, May 19: Walt Disney Co. plans to build a new campus in Florida and relocate 2,000 employees from Southern California came to a halt on Thursday following attacks from Governor Ron DeSantis and the Legislature because the company opposed a state law that bans classroom lessons on sexual orientation and gender identity in early grades. 

Business Insider reported that the decision comes of Disney's attempts to cut costs amid 7,000 planned layoffs, as well as its ongoing battle with Florida Gov. Ron DeSantis. Walt Disney Starts Laying Off 7000 Employees in Bid To Control Costs.

The employees received the information via email, with Disney Parks Chief Josh D’Amaro citing “new leadership and changing business conditions” D'Amaro wrote, “This was not an easy decision to make, but I believe it is the right one." Google Stops Work on Massive Silicon Valley Campus Citing Challenging Economic Reality: Report.

The company was reported to spend around $864 million on the campus, pulling 2000 of its employees and Imagineers from California to the campus in Lake Nona Community in Orlando, Florida. The camp would house the employees and serve as a base for Walt Disney Imagineering and the Disney Parks, Experiences and Products Division. 

The plan was however not liked by the employees who were reluctant to move cross country to Florida. 

This comes after Disney CEO Bob Iger publicly questioned Florida's interest in the company's continued investment in the state just a week ago. In a call with investors to discuss quarterly results, he noted that Disney employed more than 75,000 people in Florida, attracts millions of visitors each year to Walt Disney World and had plans to invest $17 billion to expand the resort over the next decade.

"Does the state want us to invest more, employ more people and pay more taxes, or not," Iger asked.

DeSantis spokespeson Jeremy Redfern said the state had been unsure whether the new Disney campus would come to fruition since it was announced nearly two years ago.

(The above story first appeared on LatestLY on May 19, 2023 11:18 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).