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DALLAS After settling false advertising claims in 47 states, Blockbuster is eliminating 20 percent of its headquarters staff here to offset a $70 million increase in spending for its online operation, the company said.
The layoffs will affect between 200 and 300 employees, the company said.
The nation’s largest video rental chain recently abandoned its $1.3 billion bid for No. 2 video rental chain Hollywood Entertainment. Hollywood instead merged with No. 3 Movie Gallery.
The failed merger and growing competition from online movie pioneer NetFlix and discounter Wal-Mart puts Blockbuster in an increasingly difficult marketing position, according to ratings agency analysts.
While
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