Orlando Becoming East Coast Headquarters for Disney Parks, Experiences, and Products

[DCBaker]

Here's the memo from Josh D'Amaro.

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

 

[Disney Analyst]

Lake Nona No More!

Boy, do I feel for the folks who had to move from CA to FL. Hopefully, they'll be able to get out the swamps.

Sounds like Disney may help them get back, as they should.

 

[el_super]

Lake Nona No More!

Boy, do I feel for the folks who had to move from CA to FL. Hopefully, they'll be able to get out the swamps.

Disney is going to offer to move them back, if that makes sense for them.

 

[Andrew C]

My take. They were planning to pull back anyways with the recent changes in leadership, and current events are a good excuse to frame it a certain way. Good political tactic for them.

 

[Slpy3270]

Congrats to Ron for making Florida a Southern version of Detroit.

 

[MagicHappens1971]

My take. They were planning to pull back anyways with the recent changes in leadership, and current events are a good excuse to frame it a certain way. Good political tactic.

I think this is a fair assessment, but I respectfully disagree. This move would’ve saved the company a pretty good amount of money in the long run

 

[alphac2005]

The article said that 200 people had already made the move. I wasn't aware that many (which isn't a lot of people for a corporation like Disney) had already made the switch.

Yes, we have friends who’s relatives had relocated in the past year from Imagineering and were having homes built.

 

[Andrew C]

This move would’ve saved the company a pretty good amount of money in the long run

It still would have. I just don't think Iger's "heart" was ever in this move to begin with...

 

[drnilescrane]

How many people quit or got let go or actually relocated to an office that will never open?

WDI was an organization of about 1500 before the pandemic. It's probably about 250 or so now.

A large part of that attrition was people on project hires and contracts not being renewed with the pandemic, but it's remarkable how the organization was gutted under Chapek.

Which is what this was all about. Reshaping WDI was personal for Chapek, as he felt they were an organization unable to build in a timely and cost effective manner. The best way to clean house was to force them to move - with I think the added benefit of getting slightly more "grateful" and "loyal" employees in Florida.

Iger doesn't see things that way at all, and cancelling this was a natural move.

 

[MagicHappens1971]

It still would have. I just don't think Iger's "heart" was ever in this move to begin with...

Oh I don’t disagree that it still would save them money, I just think it’s the only real “damage” they can cause to FL without spiting themselves.

 

[Disney Analyst]

Yes, we have friends who’s relatives had relocated in the past year from Imagineering and were having homes built.

Did the homes ever get built? I've heard constructions sites are ghost towns these days in Florida?

 

[Sirwalterraleigh]

 

[Kamikaze]

Good.

 

[MagicHappens1971]

Did the homes ever get built? I've heard constructions sites are ghost towns these days in Florida?

As a Floridian I don’t know where anyone could say that. I grew up in SoFlo and housing is sprouting up like weeds. I also went to FSU and lived in Tallahassee for a few years and they spring up new apartments the same way.

 

[mightynine]

Congrats to Ron for making Florida a Southern version of Detroit.

Now now, what did Detroit do to be tarred with such a horrible comment as being compared to America's punchline?

 

[el_super]

Good. If Florida wants to play these games, expect the golden goose to stop giving you eggs.

I want to say ... before this spirals... that it probably has little to do with the politics in Florida right now. The move was problematic from an HR perspective and too many people were saying no or pushing out their move dates to find more work. We all assumed that their ultimate goal was trimming personnel from WDI, but I don't believe they imagined so many would flat out say no. Theyve had too many roles left empty and too much uncertainty over training replacements.

Additionally, building a giant new campus in the post COVID world, and for adding capacity after you just laid off 7000, just doesn't make business sense.

 

[Andrew C]

Now now, what did Detroit do to be tarred with such a horrible comment as being compared to America's punchline?

Went from a beacon of industry, arts, and American ingenuity to a cesspool of decay and sadness?

 

[TalkingHead]

Many of these job openings had already been posted on Indeed, et al., when the DeSantis administration declared war on Disney. Would’ve been a major boon for professional opportunities in Orlando, and probably would’ve been more impactful than the possible 13k jobs D’Amaro mentions in the memo.

Thanks again, Ron.

 

[fgmnt]

I think this is a fair assessment, but I respectfully disagree. This move would’ve saved the company a pretty good amount of money in the long run

That's certainly likely, but it's also possible that if current management no longer forecasts the need for additional office space because of factors outside of the State's acts of reprisal against the company. They have reduced headcount and a number of businesses are offering hybrid options. Is now a really great time to invest in commercial office real estate anywhere?

 

[Tha Realest]

How many people quit or got let go or actually relocated to an office that will never open?

I wonder about someone like Kevin Lively, who chose not to go, quit instead, sold off a lot of his stuff, and maybe burned a bridge or two after leaving, feels about all this.