Roku to Sublease Two Office Buildings in San Jose Headquarters Campus
Key Highlights :
Roku, the maker of cutting-edge video streaming devices, has decided to slash its office footprint in San Jose by subleasing two big office buildings at its headquarters campus near the city’s airport. The company disclosed in a recent filing with the Securities and Exchange Commission that it expects to record an impairment charge in a preliminary estimated range of $160 million to $200 million related to ceasing to use certain office facilities.
The two office buildings are located within the Coleman Highline tech campus across the street from San Jose International Airport. The buildings are located at 1155 Coleman Avenue, which is the current Roku headquarters building, and at 1143 Coleman Avenue. The 1155 Coleman office building totals 194,500 square feet while the 1143 Coleman building totals 162,600 square feet, according to a marketing brochure distributed by Colliers, a commercial real estate firm. Two Colliers brokers, vice chair Paul McManus and vice president Blake Zamudio, are handling the sublease efforts.
The company’s decision to reduce its office footprint comes at a time when it revealed in an SEC filing this month that it had decided to chop 10% of its worldwide workforce. These layoffs are just the latest in a series of employment cutbacks by Roku. Roku has disclosed plans to lay off 184 workers in San Jose in two prior rounds of staffing reductions. In December 2022, Roku said it would cut 93 San Jose jobs and in March 2023, the company revealed plans for the elimination of another 91 positions in that city.
It’s possible that Roku’s next-door neighbor in the Coleman Highline campus could wind up in one or both of the Roku offices. In 2022, ByteDance subleased from Yahoo two office buildings at 1193 and 1199 Coleman Avenue. By early 2023, the company had moved into the buildings, which total 658,000 square feet. China-based ByteDance is also in hiring mode locally. As of Wednesday, TikTok was seeking to fill 1,027 jobs in the San Jose market, according to the TikTok website.
Over the one-year period that ended in June, Roku lost $660.6 million on revenue of $3.22 billion. During the 2022 calendar year, Roku lost $498 million on revenue of $3.13 billion. With the sublease of its two office buildings in San Jose, Roku is hoping to reduce its overhead costs and return to profitability.
