What a Mess – Disney’s Relocation to Florida Unravels

What a messy time this is for Disney. In July of 2021, we were first to tell you about Disney’s plans to move their Parks, Experiences, and Products unit, also known as DPEP, (which includes Imagineering) to Lake Nona, Florida. They expected over 2,000 jobs to relocate from California by the end of 2022. We learned this week that the move has been delayed. Here’s the official statement from Disney:

“While a growing number of our employees, who will ultimately work at the campus, have already made the move to Central Florida, we also want to continue to provide flexibility to those relocating, especially given the anticipated completion date of the campus is now in 2026. Therefore, where possible, we are aligning the relocation period with the campus completion.”

But there’s always more to a story like this and the move to Lake Nona started to look less likely back in March of this year when Bob Chapek picked a fight with Florida’s Governor and upset his own employees at the same time (See: Disney’s Embattled CEO Creates Troubled Waters for Company Over Don’t Say Gay Bill). 

Disney had initially been offered a $578 million dollar tax break to move operations to Florida, at the time they were feuding with California over Covid restrictions and Florida used the opportunity to steal some business away from the Golden State. But earlier this year, Florida politics started getting even more wacky and bigoted than usual, and Bob Chapek managed to entangle Disney in the resulting uproar. This caused an employee uprising demanding that Disney speak out, which Bob was so delayed in doing that it became national news. When he finally did speak up, it was too late and Florida turned on him for getting involved in their politics (even though Disney has ALWAYS been behind Florida’s politics as one of the state’s largest employers and political contributors). 

Florida’s punitive Governor, Ron DeSantis, immediately set about to punish Disney by dissolving the special administrative district Disney has at Walt Disney World (called Reedy Creek). Reedy Creek essentially allows Disney to function as its own city and govern itself. The district was established all the way back in 1967, so its sudden revocation by the state was purely out of spite. That has left many wondering if the next step might be for the state to also revoke the hefty tax break Disney had been offered for Lake Nona as well.  

Over the last few days, most employees in business units slated for the move to Lake Nona have been informed through meetings and Zoom calls that the move has been pushed to 2026. The confusion, questions, and upheaval the delay has created has many wondering what will happen. Upwards of 70% of employees in many departments have already told Disney that they will NOT move to Florida. And hundreds of those valued employees have already left the company. But since all of the impacted employees had been given a December 2022 deadline to move, and many were already in the process of doing so, there is a tremendous amount of turmoil in the Disney ranks today.   

Current and former DPEP employees are expressing nearly universal anger and frustration over the entire situation and how it has eroded their work environments and morale.  Their entire lives have been upturned by a forced move, the loss of many beloved coworkers, and a constant unknown of when their job may come to an end or when they will be forced to move.  And since Disney has lost so much of its talent in the middle of one of the tightest job markets in decades, it has also been incredibly difficult for Disney to replace those who have already been doing their jobs for so long.  It’s a no-win situation. The Disney Company forced a move to save money but now finds themselves unable to replace their qualified workforce. But the damage has already been done and it’s too late to just make things like they were before. Many have left, with the Sword of Damocles hanging over those who have not yet moved, and a swirl of questions about what happens next makes it almost impossible for many to efficiently do their work.

Today, while DPEP employees wrestle with what will happen to them, a Ferris wheel was set up on the studio lot and the employees were given a little party with free food. As you might expect, the effort was met with a mixed reaction given the painful circumstances employees are dealing with. 

Many questions remain. What will happen to employees who quit because they weren’t willing to move? Might some be offered their jobs back? What about those who said they won’t move but had yet to separate from the company? Will they be allowed to stay with the company until Disney finally opens Lake Nona?  And will Lake Nona really open at all? 

We suspect that many of those questions are not yet resolved and the various departments will need to reassess their business needs. At the end of the day, Disney has already accomplished their goal of cutting labor costs. So whether or not the move ever happens, they can show shareholders a reduced labor pool. And Disney now has 4 years to wait and see how the Florida politics shake out before deciding to move or quietly just stay in California.