The actor’s recent public image troubles made promoting the Brad Furman-directed film difficult.
“[T]he idea was to do Pinocchio during the ascension of fascism in Italy, with Mussolini,” del Toro says.
A contingent of patrons who disagree with the decision are now calling for a boycott of the theater.
The news comes after the studio’s Rings bombed at the box office last weekend.
Studio says they never greenlit the project, and it’s off the table for now.