April 10, 2011

New Google CEO Makes Managerial Decisions

Google Inc. CEO Larry Page has made some changes in key product groups, including social networking and mobile.

According to a Reuters report, Page placed executives leading the groups directly under his supervision, eliminating management layers thought to slow product development.

Sources familiar with the situation told Reuters that social networking chief Vic Gundotra, Android Head Andy Rubin, Chrome senior vice president Sundar Pichai and YouTube head honcho Salar Kamangar have been given a direct reporting line to Page and greater autonomy.

Reuters reported that Page also gave search senior vice president Alan Eustance and advertising chief Susan Wojcicki a direct line as well.

The new decision sheds new light on the company's strategic priorities.

"The folks that you're seeing, which as part of the reorg have kind of come to the top, are sort of the core areas of the business that the company is focused on," one source familiar with the matter told Reuters.

Reuters reported that for those groups the idea is to have less of a "horizontal" management structure, in which decisions need to be approved across various departments.

This move is the first made by Page since taking over the CEO position and replacing Eric Schmidt last Monday.

Google is the world's largest social networking engine and generates about $29 billion in revenue in 2010.

Ben Schachter, an analyst with Macquarie Capital, told The Associated Press that the management changes are not surprising.  However, he said Page's decision to elevate "social" to make it a separate group on par with ads or search shows a clear concern over the threat from Facebook and others.


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