Netflix Inc. (NASDAQ:NFLX), a streaming behemoth that has long called Los Gatos home, has subleased its older site, which includes its formal headquarters building.
Monday, a company spokesman verified that both structures on the campus, located off Winchester Boulevard and slightly north of California State Route 85, are now available. The buildings at 100 and 150 Winchester Circle, which are owned by The Sobrato Organization, offer a total of over 160,000 square feet of office space.
A Netflix (NASDAQ:NFLX) representative told the Business Journal that the company examines its real estate portfolio on a regular basis to assess if it is using its space efficiently and if it is planning for future development. In the wake of the Covid-19 outbreak, an increase in the number of staff working remotely full- or part-time, influenced the company’s decision to leave its Winchester Circle facility, according to a spokesman.
Since 2006, Netflix has occupied 100 Winchester Circle as its headquarters. According to the company’s most current SEC filings, the facility continues to serve as its formal corporate headquarters. In 2008, the company relocated to 150 Winchester Circle.
The digital media titan, which was launched in 1997 in Scotts Valley, will not leave Los Gatos. Instead, it has consolidated its Silicon Valley operations at its four-building facility on Albright Way, almost half a mile south and across Highway 85 from its Winchester Circle structures. Its 485,000-square-foot Albright Way campus, which was completed in 2017, currently serves as Netflix’s unofficial headquarters.
The Winchester Circle buildings are being marketed by the brokerage firm JLL, which has listed them individually. Tenants can lease either an entire 27,000-square-foot floor of one of the towers or the full property.
The space is being marketed by JLL Senior Managing Director Scott Mathisen and Managing Director Toss Vallentine. According to the brochures for both properties, both are presently available. Neither brochure stated the cost of the space.
A Challenging Year for Netflix
The decision by Netflix (NASDAQ:NFLX) to sublet its Winchester Circle campus follows a challenging year for the firm. As a result of increased competition, the streaming media provider’s customer base has fallen for two consecutive quarters. After a period of rapid expansion during the pandemic, the company’s revenue growth has slowed significantly, and its sales in the most recent quarter fell short of Wall Street’s expectations.
Meanwhile, Netflix’s (NASDAQ:NFLX) share price has dropped from a record high of over $690 in October to $249.11 as of Monday’s market closing.
In response to such difficulties, the company has laid off around 450 people, or 3.7% of its 12,135-person workforce, over the course of two waves of layoffs.
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