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Subnetting a network of 120 users in two locations.

We recently acquired a 2nd warehouse 2 miles down the block from the existing one. 50 of the 120 employees are going to be moving into that space each with a pc and ip connection. Currently we are using one subnet for all 120 users plus another 20 or so IP's for equipment. How would I go about breaking out the subnets so the network would run smoother. Let's say there were 6 departments with 20 ip's related to each. Also would it be worth breaking the network up into smaller networks and if so why? Should I break up my network virutually or physically?
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8/22/2022 - Mon