LOS GATOS — Netflix, a Silicon Valley tech titan and streaming pioneer whose outlook has turned fuzzy amid fierce competition, is seeking to sublease two Los Gatos office buildings as part of an ongoing cutback binge.
The company sublease efforts are focused on two buildings that together total 164,000 square feet, according to a pair of marketing brochures that are being circulated by JLL, a commercial real estate firm.
One building, at 150 Winchester Circle, totals 82,700 square feet, while the other office building, at 100 Winchester Circle, totals 81,300 square feet, the JLL marketing brochures state.
The Netflix office space cutbacks in Los Gatos arrived in the wake of the Netflix disclosure of two sour quarters of financial results covering the first six months of 2022.
Of primary concern: Netflix over the first half of this year has shed 1.2 million subscribers, including a jaw-dropping 1 million subscribers in the April-through-June second quarter.
About the only bright spot: Earlier this year, Netflix had predicted it would lose 2 million subscribers in the second quarter, meaning the subscriber losses represented far less devastation than first anticipated for the company.
Streaming services such as Disney+, Peacock, Paramount+ and HBO Max have siphoned off some of Netflix’s customers.
Netflix chopped at least 300 jobs during the first half of 2022. These included layoffs affecting 150 workers in Los Angeles, according to an official filing with the state’s Employment Development Department. The Los Angeles cutbacks were effective in April 2022.
The EDD website didn’t list any Netflix layoffs in California other than the ones in Los Angeles, as of Aug. 15.
An estimated 500 to 1,600 people could work in the two Los Gatos buildings that Netflix is offering for sublease. JLL brokers Scott Mathisen and Toss Valentine are handling the sublease efforts.
Netflix still operates in four buildings in Los Gatos, at 101, 111, 121 and 131 Albright Way.
Over the 12 months that ended in June, Netflix earned $5.09 billion on revenue of $31.03 billion. During the 2021 calendar year, Netflix earned $5.12 billion on revenue of $29.7 billion, according to the Yahoo Finance site.
Source: www.mercurynews.com