NEW YORK (TheStreet) -- After months of speculation, Microsoft (MSFT) announced unprecedented job cuts last week, targeting its recently bought Nokia division. Two top analysts say this move will give the world's biggest software vendor a renewed focus, allowing it to double down on new expanding businesses such information management, the cloud, or security.
While the job cuts appear to be driven primarily by the Nokia phone division acquisition, Mark Bowker, senior analyst at the Enterprise Strategy Group, has said that Microsoft's restructuring efforts are pivoted toward its vision for the future, as opposed to the macro trends in the industry where technology giants have often resorted to layoffs to revive their flagging growth. Merv Adrian, Gartner's lead analyst on Microsoft, has predicted that Microsoft will continue growing in areas where it is seeing momentum.
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