Struggling outsourcing firm Capita is set to move out of its Berners Street headquarters in London’s west end as Netflix looks set to takeover the lease for the 87,000 square foot building.
Faced with a mounting pile of debt and a turnaround effort that will cost more than originally anticipated, Capita has reportedly decided not to renew the lease.
However, the official word from Capita (according to Bloomberg) is that the reason for the move was because more of its employees wanted to work from home – however, in reality it appears to have been a timely necessity to help shore up the finances of the company and will be welcomed by shareholders.
Conversely, Netflix has gone from strength to strength as it looks to build up its production capacity within the UK and is looking forward to moving into the headquarters of the outsourcing firm.
Netflix’s occupation of the office will triple its office space in London with Bloomberg confirming the move via an e-mailed statement that stated Netflix was excited to expand its operations in London.
Reed Hastings, co-CEO of Netflix is somewhat against work from home, calling it a ‘pure negative’.
The share price of Capita is currently down 82% in the year-to-date – having fallen from around 162p to 31p.