In huge news for thousands of Disney employees of the Parks, Experiences, and Products segment of the company (DPEP), Disney has decided not to move forward with the planned relocation of over 2,000 jobs. Josh D’Amaro has just sent an email to employees of the unit letting them know of the plans:
Team,
I wanted to let you know that we’ve just begun communication regarding our updated plans for the Lake Nona campus.
As many of you know, the company had decided to build a new Disney campus in Lake Nona and many cast members, Imagineers, and employees were asked to commit to making a move to Florida. While some were excited about the new campus, I know that this decision and the circumstances surrounding it have been difficult for others.
Given the considerable changes that have occurred since the announcement of this project, including new leadership and changing business conditions, we have decided not to move forward with construction of the campus. This was not an easy decision to make, but I believe it is the right one. As a result, we will no longer be asking our employees to relocate. For those who have already moved, we will talk to you individually about your situation, including the possibility of moving you back.
It is clear to me that the power of this brand comes from our incredible people, and we are committed to handling this change with care and compassion. I remain optimistic about the direction of our Walt Disney World business. We have plans to invest $17 billion and create 13,000 jobs over the next ten years. I hope we’re able to do so.
We are committed to our teams who call Central Florida home and to all of our Cast Members around the world, and I want to thank you for your continued dedication to Disney Parks, Experiences and Products and for delivering world-class entertainment for our guests.
Josh
There’s a lot to unpack in that message. Many employees have already moved and will need to figure out their new situation (will they move back, leave the company, be allowed to work remotely?). Of course, there are many thousands of Disney employees who opted to leave the Disney Company rather than move to Florida.
Josh also mentions that they have $17 billion in future projects for Walt Disney World, and the creation of over 13,000 new jobs, that he hopes they will still be able to complete. This is a veiled threat to the state to stay out of their business. Florida’s unprecedented interference and hostility toward its largest employeer has caused Disney to rethink everything it is doing in the state. (see our latest WDW Update for an update on the fued over Disney’s legislative district)
So, what were Disney’s original plans for the Lake Nona development? Read our original (now updated) coverage below.
Why Was The Lake Nona Project Canceled?
There are a few reasons why we think the Lake Nona project is not moving forward. First, due to the current Disney Layoffs (of at least 7,000 positions), the job cuts and labor savings Disney hoped to achieve have already been realized. Secondly, there was massive pushback from essential Disney employees who did not want to move to Florida, including most of Disney’s creatives in Imagineering. Also, the leadership of the Disney Company has changed. These plans were first attempted by Bob Chapek and led by Josh D’Amaro. Now that Bob Iger is leading the company, the direction that Josh has been given has shifted. And finally, Florida has created an uncertain environment for Disney with tremendous hostility toward Disney from the state’s governor and legislature. As a result, it would have been too risky to send more employees to the state, not knowing what the next round of punitive measures from the state might be. Disney is cutting its losses.
Original Lake Nona Plans
In July of 2021, Disney confirmed plans to build a campus for its Parks, Experiences and Products unit (DPEP) near the Orlando Florida Airport. We had speculated that such a move was coming, and Disney finally confirmed it. Josh D’Amaro, Chairman of DPEP, confirmed the plan in an email to employees of the giant business unit. The two pronged plan would have reduced the number of staff in the unit by at least 2,000, consolidated some jobs, and moved most of the rest of the unit to Orlando. Only jobs which were location-dependent would have remained in California (and other exempt roles around the world).
Why Was Disney Moving Jobs To Orlando
For the last several years, Disney has been consolidating jobs into two large business units, one of them contains the television, movie and streaming operations, and the other unit is Parks, Experiences and Products (DPEP). We’ve never quite understood how “Products” fit into the parks and travel business, but that was Bob Chapek’s background and it made sense to him at the time. When Chapek became CEO and Josh D’Amaro moved up from Parks to Chairman of the whole business unit, he wants to have his team together in one place.
That’s was the official line on why it happened the way it did. Though, as you might expect, it’s also quite a bit cheaper to buy land, operate a large campus, and pay wages in Florida than in California.
What Disney Jobs Were Being Relocated From California to Orlando?
Professional roles such as HR, Finance, and Tech, as well as Imagineering, Consumer Products, and Travel lines of business were all expected to move. Those who indicated that they were unwilling to move were separated from the company (in most cases)
Employees were told to expect that “most Southern California-based DPEP roles that are not fully dedicated to the Disneyland Resort or, in some cases, the international parks business, will be asked to relocate to this new Florida Campus.”
Where Was the New Disney Parks, Experiences, and Products Campus to be Located?
The new Disney campus was to be located in an area of Orlando called Lake Nona. It would have been a master-planned community with a mix of high-end housing, retail, medical facilities, and room for business parks and campuses like the planned Disney development. The location would have also been adjacent to the Orlando International Airport, which would make it easy for busy executives to hop between Disney’s major hubs in California, New York, and Orlando. And about 20 miles away from Walt Disney World.
The developer of Lake Nona describes the area:
Called “the Future of Cities” by Fortune magazine, Lake Nona ranks among the fastest-growing, best-selling communities in America. Home to Lake Nona Medical City, a Sports & Performance District, world-class educational institutions and unique and vibrant residential communities, the 17-square-mile master-designed community is recognized for excellence in diverse industry clusters, residential and commercial design, and human performance.
The developer touts Lake Nona as a forward-looking community built on sustainability, healthy living and integrated technology.
When Would The New Disney Campus in Orlando Have Opened?
Originally, Disney planned the move to be completed by December of 2022. However, construction was long delayed and political issues in Florida caused Disney to pause their plans while they reevaluated.
Josh D’Amaro Letter to Employees of Disney Parks, Experiences and Products
Here’s the original letter Josh D’Amaro sent to DPEP employees letting them know about the Lake Nona relocation plans.
Let’s Hear From You
Readers of this site likely aren’t shocked by this news. But many of the employees impacted may be. We can only imagine the questions and upheaval from employees who were terminated rather than move, those who moved and now need to move back, and all those who were in the process of relocating. And, this should be an obvious sign to the state of Florida that Disney does have the power of where they choose to spend their money.
We’ll keep a very close eye on this one as it progresses.