Visitors walk along Main Street at The Magic Kingdom as Walt Disney World reopens following Hurricane Ian on September 30, 2022 in Orlando, Florida.
CNN  — 

Disney is scrapping plans to build a new campus that would have brought thousands of employees to Florida, citing “changing business conditions,” according to a memo provided by a Disney spokesperson.

The decision comes at a time when the company is openly feuding with the state’s Republican Governor Ron DeSantis, who is expected to officially enter the 2024 GOP presidential race next week, CNN reported Thursday. DeSantis didn’t immediately respond to CNN’s request for comment.

It’s also tense time for Disney as the media industry grapples with a difficult advertising environment and a massive writers strike.

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The campus in Lake Nona, Florida, in the greater Orlando area, was expected to add 2,000 jobs.

Disney (DIS) and DeSantis have been sparring for over a year about controversial legislation the governor signed that restricts the teaching of sexual orientation and gender identity in schools. Critics have labeled the law “Don’t Say Gay.”

The fight has intensified in recent months after DeSantis moved to take over the company’s special tax district setting rules for Disney World and surrounding areas. DeSantis has tried to install a hand-picked board to oversee the district. Before the Florida government selected the board in February, Disney had reached agreements with the outgoing board that limited the power of DeSantis’ appointees.

The two sides are now locked in a legal battle.

Last month, Disney CEO Bob Iger told investors that he believed DeSantis’ actions to punish Disney were “anti-business.”

Disney’s stock rose slightly after its announcement.

– CNN’s Steve Contorno contributed reporting.