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Netflix seeks to sublease South Bay office buildings

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LOS GATOS — With prospects clouded amid fierce competition, Silicon Valley tech titan and streaming pioneer Netflix is ​​looking to sublease two Los Gatos office buildings as part of an ongoing deep cut. is.

According to two sets of marketing brochures distributed by commercial real estate firm JLL, the company’s subleasing efforts are focused on two buildings totaling 164,000 square feet.

One building at 150 Winchester Circle totals 82,700 square feet and another office building at 100 Winchester Circle totals 81,300 square feet, according to JLL’s marketing brochure.

Netflix’s office space reduction in Los Gatos comes after the company disclosed two quarters of financial results covering the first six months of 2022.

Office building leased to Netflix at 150 Winchester Circle in Los Gatos. (Google Map)

Key concern: Netflix lost 1.2 million subscribers in the first half of this year. This includes a staggering 1 million subscribers in the second quarter from April to June.

On the lone bright spot: Earlier this year, Netflix predicted it would lose 2 million subscribers in the second quarter.

Streaming services like Disney+, Peacock, Paramount+, and HBO Max are sucking up some of Netflix’s customers.

Netflix has cut at least 300 jobs in the first half of 2022. That included layoffs affecting 150 workers in Los Angeles, according to official documents filed with the state’s Bureau of Employment Development. The Los Angeles cuts went into effect in April 2022.

EDD’s website does not list any Netflix layoffs in California outside of Los Angeles as of August 15.

An estimated 500 to 1,600 people can work in the two Los Gatos buildings Netflix offers for subleasing. JLL brokers Scott Mathisen and Toss Valentine are handling the subleasing effort.

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