In March, Disney known as Gov. Ron DeSantis of Florida “anti-business” for his scorched-earth try and tighten oversight of the corporate’s theme park resort close to Orlando. Final month, when Disney sued the governor and his allies for what it known as “a focused marketing campaign of presidency retaliation,” the corporate made clear that $17 billion in deliberate funding in Walt Disney World was on the road.

“Does the state need us to speculate extra, make use of extra individuals, and pay extra taxes, or not?” Robert A. Iger, Disney’s chief govt, mentioned on an earnings-related convention name with analysts final week.

On Thursday, Mr. Iger and Josh D’Amaro, Disney’s theme park and shopper merchandise chairman, confirmed that they weren’t bluffing, pulling the plug on an almost $1 billion workplace advanced that was scheduled for building in Orlando. It might have introduced greater than 2,000 jobs to the area, with $120,000 as the typical wage, in accordance with an estimate from the Florida Division of Financial Alternative.

The undertaking, often known as the Lake Nona City Heart, was alleged to contain the relocation of greater than 1,000 workers from Southern California, together with most of a division often known as Imagineering, which works with Disney’s film studios to develop theme park sights. A lot of the affected workers complained bitterly about having to maneuver — some give up — however Disney largely held agency, partly due to a Florida tax credit score that may have allowed the corporate to recoup as a lot as $570 million over 20 years for constructing and occupying the advanced.

When he introduced the undertaking in 2021, Mr. D’Amaro cited “Florida’s business-friendly local weather” as justification.

Mr. D’Amaro’s tone in an e mail to workers on Thursday was notably totally different. He cited “altering enterprise circumstances” as a motive for canceling the Lake Nona undertaking. “I stay optimistic concerning the path of our Walt Disney World enterprise,” Mr. D’Amaro mentioned within the memo. He famous that $17 billion was nonetheless earmarked for building at Disney World over the following decade — progress that may create an estimated 13,000 jobs. “I hope we’re in a position to,” he mentioned.

However the firm’s battle with Mr. DeSantis and his allies within the Florida Legislature figured prominently into Disney’s resolution to cancel the Lake Nona undertaking, in accordance with two individuals briefed on the matter, who spoke on the situation of anonymity to debate non-public deliberations. A spokeswoman for Mr. Iger mentioned he was not obtainable for an interview.

About 200 Disney workers already relocated to Florida from California. Mr. D’Amaro mentioned in his notice that the corporate would talk about choices with them, “together with the opportunity of shifting you again.” The Lake Nona undertaking had initially been scheduled to open subsequent yr. Final July, Disney pushed again the move-in date to 2026, citing building delays.

The Lake Nona campus, about 20 miles from Disney World close to the Orlando Worldwide Airport, had been championed by Bob Chapek, who served as Disney’s chief govt from 2020 till he was fired final yr. Mr. Iger, who got here out of retirement to retake Disney’s reins, was a lot much less enthusiastic concerning the undertaking — even earlier than the corporate turned mired in its battle with Mr. DeSantis. As quickly as he returned to Disney, Mr. Iger started telling lieutenants, for example, that it made little sense to maneuver Imagineering so far-off from Disney’s film studios. As he’s fond of claiming, “Inventive groups have to be collectively.”

Disney can also be within the midst of reducing $5.5 billion in prices because it seeks to enhance profitability, pay down debt and restore its dividend.

Mr. DeSantis and Disney have been sparring for greater than a yr over a particular tax district that encompasses Disney World. The battle began when the corporate criticized a Florida training legislation that opponents labeled “Don’t Say Homosexual” as a result of it limits classroom instruction about gender identification and sexual orientation — angering Mr. DeSantis, who repeatedly vowed payback.

Since then, Florida legislators, on the urging of Mr. DeSantis, have focused Disney — the state’s largest taxpayer — with quite a lot of hostile measures. In February, they ended Disney’s long-held capacity to self-govern its 25,000-acre resort as if it have been a county by giving Mr. DeSantis management over authorities providers on the resort.

It was quickly found that the earlier, Disney-controlled board had authorized improvement contracts that lock in a progress plan for the resort. An effort to void these agreements has since resulted in dueling lawsuits, with Disney suing Mr. DeSantis and his allies in federal courtroom and the governor’s tax district appointees returning fireplace in state courtroom.