Disney scraps $1 billion campus in Florida — and more than 2,000 jobs that were set to move. It's escalating the fight with Ron DeSantis.

• Disney is backtracking on a plan to build a nearly $1 billion campus in Florida, The Wall Street Journal reported.
• The plan would have moved about 2,000 Disney staff members to a town just outside Orlando.

Walt Disney made U-turn on its decision to build a nearly $1 billion corporate campus in Florida, according to a report from The Wall Street Journal.

The decision to forego the new campus was the result of Disney's attempts to cut costs amid 7,000 planned layoffs, as well as its ongoing battle with Florida Gov. Ron DeSantis, the Journal said, citing people with knowledge of the issue.

The campus would have moved more than 2,000 Disney employees from its headquarters in California to a town near Orlando.

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They're no longer set to move — and "hundreds of employees," who had already moved to Florida, will be able to decide between staying in there or going back to California, according to the report.

A spokesperson for Disney did not respond to a request for comment from Insider.

DeSantis' office blamed what it referred to as Disney's financial challenges when asked about the scuttled plans for the Florida campus.

"Disney announced the possibility of a Lake Nona campus nearly two years ago," Jeremy Redfern, press secretary for the governor, told Insider. "Nothing ever came of the project, and the state was unsure whether it would come to fruition. Given the company's financial straits, falling market cap and declining stock price, it is unsurprising that they would restructure their business operations and cancel unsuccessful ventures."

Disney's stock is up about 5.4% so far this year; the Dow Jones Industrial Average is up around 1.2% over the same time frame.

Meanwhile, the Journal said that Disney's head of Parks, Experiences and Products, Josh D'Amaro, announced that the plan had been abandoned in an internal email to staff on Thursday.

"While some were excited about the new campus, I know that this decision and the circumstances surrounding it have been difficult for others," D'Amaro wrote, according to Journal. "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."

Disney's decision to scrap the campus is just one of many developments in its feud with DeSantis. Last month, Disney sued the Florida governor, accusing DeSantis of trying to "weaponize government power" against the company when he tried to alter Disney's special tax district.

The lawsuit alleged that DeSantis was taking action against Disney because the company had spoken out against Florida's Parental Rights in Education Act, which severely curtails curriculum involving LGBTQ topics in public schools.

Critics deride the law as "Don't Say Gay," and DeSantis this week signed a slew of anti-transgender rights bills into law that will affect bathroom usage, pronouns in schools, and medical care. The governor is set to make a 2024 White House bid official next week, according to numerous reports.

Disney CEO Bob Iger recently appeared to issue a threat to Florida lawmakers, reminding them that Disney World brings millions of tourists to Florida each year and is its largest tax payer. The company's corporate offices are headquared in Burbank, California, but its Walt Disney World resort and theme park is Florida's

"Does the state want us to invest more, employ more, and pay more taxes — or not?" Iger asked during the company's earnings call in May.