In an effort to simplify the management structure at Google and its parent company Alphabet, the founders of Google, Larry Page and Sergey Brin, have decided to relinquish their positions as CEO and president of Alphabet. The reigns of the company would be handed over completely to the current Google CEO Sundar Pichai.
“With Alphabet now well-established, and Google and the Other Bets operating effectively as independent companies, it’s the natural time to simplify our management structure,” Page and Brin wrote in a letter on Tuesday announcing their decision to step down.
The co-founders added that there was mo longer nay need for having “two CEOs and a President” to run both companies – Alphabet and Google. This realization has prompted them to step down and allow complete control of running the companies at the hands of Pichai who will now be the CEO of both Alphabet and Google.
“There is no one that we have relied on more since Alphabet was founded, and no better person to lead Google and Alphabet into the future,” Page and Brin went on to write.
Pichai became the CEO of Google in 2015 and he has been with the company for more than 15 years now. Alphabet was created in 2015 as the parent company of Google. .
He will continue to work with Page and Brin, who’ll stay on as Alphabet board members, Pichain said in his own remarks on the issue. “I want to be clear that this transition won’t affect the Alphabet structure or the work we do day to day,” Pichai said. “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.”
Analysts however say that this transition in the company has already taken place to an extent. The company has readily put forward Pichai to speak at company keynotes, to testify to lawmakers in the United States and also to answer the tough and sometimes uncomfortable questions form analysts and investors during Alphabet’s quarterly earnings calls, which has already made him the face of the company. And on the other hand, the co-founders Page and Brin have mostly shied away from the limelight and public glare.
With the stepping down, direct control over Alphabet’s growing family of subsidiary companies will now be at the hands of Pichai. The subsidiaries of Alphabet include the driverless car unit Waymo, the drone delivery business Wing, and balloon-powered internet provider, Loon. This will also allow Pichai to decide on long-term investments in Alphabet’s “Other Bets” which are mostly comprised of experimental projects that the company undertakes.
They will consult with Pichai on topics they’re particularly passionate about, , Page and Brin said in their letter. “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!” they added.
(Adapted from PCMag.com)