The new moves by Larry Page have been anticipated by investors.
To keep up with Facebook and Apple, Google Inc. CEO Larry Page updated 6 key product groups’ management, social networking and mobile included. Page became CEO earlier in the week and has put the groups’ executives under his direction as part of the revamp. The move got rid of organizational levels that cause slow product progress. Some insiders said, direct contact to Page was granted to Vic Gundotra (social networking head), Andy Rubin (Android head), Chrome Senior VP Sundar Pichai, Salar Kamangar (YouTube head), Alan Eustace (who is the senior VP for search) and Susan Wojcicki (advertising chief) for better independence.
Page’s management changes happened after succeeding Eric Schmidt on Monday. It is part of Google’s priority strategic moves to keep abreast of Internet usage redefined by mobile gadgets and social media services. A source said folks that are seen coming to the top is part of the reorganization and is sort of the core areas of the business that the company is focused on. In these groups, it is aimed to have less horizontal management makeup to make the approval of decisions avoiding too many departments.
To be given a higher company profile is the area of social networking which Google wanted to focus on for the right formula. Stifel Nicolaus analyst Jordan Rohan said social is at the same table as Android and search and ads with social is the biggest discussion part. With $29 billion in revenue in 2010, Google is the top search engine. However, Facebook intimidates Google’s slot as online information’s top access. Over 500 million Facebook subscribers use the site to for practically everything from chatting to music and movies.
Google’s hit was its Android smartphone software becoming America’s most sought. Apple and Research in Motion trail behind said comScore, a research firm. A Google spokesman acknowledged that company reorganization is happening but was quiet about details. He said when the change in CEO was made known in January, Page looked forward to restructure company operations and to make accountability lines clearer.
Page’s moves were anticipated by investors. He was predicted to cut red tape and renew search, mobile and technological innovation focus. However, there is also the fear that Page might overlook Wall Street management. The Google revamp happened days following the exit of Senior Vice President of Product Management Jonathan Rosenberg. The company said Rosenberg’s exit was planned in 2012 or the next. Some of those were promoted by Page used to be under Rosenberg. Friday’s regular session’s closing saw Google’s shares at $578.16 (0.3% down).
