4 years after Google changed its company’s structure, created Alphabet, and appointed Sundar Pichai as CEO of Google, the company is making significant changes. This time, as part of its changes, it is now making Pichai the ultimate boss in the group.
In a major development, Sundar Pichai will be the CEO of Google as well as Alphabet. Google, and Alphabet which is the larger group is one of the most important and powerful companies in the world.
Here we bring the story in 8 points to tell you the complete developments,
- Google founders Larry Page and Sergey Brin are taking a step back. Larry Page until today was the CEO of Alphabet since Google carried out it’s corporate restructuring in 2015. Today, both Page and Brin, who is barely seen in public representing Google, are reducing their roles even further.
- In a joint letter, Page and Brin say: “Today, in 2019, if (Google) was a person, it would be a young adult of 21 and it would be time to leave the roost. While it has been a tremendous privilege to be deeply involved in the day-to-day management of the company for so long, we believe it’s time to assume the role of proud parents-offering advice and love, but not daily nagging!”
- The statement clearly means that the founders now want to simplify the management structure at Google and Alphabet. They say this is because “With Alphabet now well-established, and Google and the Other Bets operating effectively as independent companies (and) it’s the natural time to simplify our management structure.”
- Google and Alphabet will have just one CEO. Larry Page will step down. Sundar Pichai will come in. Here is what the letter from founder notes: “Alphabet and Google no longer need two CEOs and a President. Going forward, Sundar will be the CEO of both Google and Alphabet. He will be the executive responsible and accountable for leading Google, and managing Alphabet’s investment in our portfolio of Other Bets.”
- So what will be the role of Larry Page and Sergey Brin now? Where do they go? “We are deeply committed to Google and Alphabet for the long term, and will remain actively involved as Board members, shareholders and co-founders. In addition, we plan to continue talking with Sundar regularly, especially on topics we’re passionate about,” say Page and Brin in the letter.
- Hence, it is clear that Page and Brin now don’t want to be involved in day-to-day workings of Google or Alphabet. The impression that goes out is that they are done running the business. They want to do something else, but what else is that is not yet clear.
- Sundar Pichai meanwhile wrote a separate letter to Google employees in which he assures them that it is business as usual.
“I want to be clear that this transition won’t affect the Alphabet structure or the work we do day to day. I will continue to be very focused on Google and the deep work we’re doing to push the boundaries of computing and build a more helpful Google for everyone,” he writes.
- What happens to Equity Market? Apparently, the market has a lot of confidence in Pichai. There is a marginal (less than 1 per cent) positive impact on Google shares. The fact that the price has not gone down is a good sign for Google and Pichai.
Want to publish your own articles on DistilINFO Publications?
Send us an email, we will get in touch with you.