• 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.

• The decision appears to be another development in Disney's battle with Florida Gov. Ron DeSantis

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.

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.