There are major changes at Alphabet, the parent company of Google. Alphabet CEO Larry Page is stepping down from his position. Google Co-founder and Alphabet President Sergey Brin is also leaving – and he is not being replaced. Brin’s position has been eliminated.
Sundar Pichai will now take over as CEO of Alphabet remaining at the helm of Google.
“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,” wrote Page and Brin in a statement with the heading “A letter from Larry and Sergey.”
“We’ve never been ones to hold on to management roles when we think there’s a better way to run the company. And Alphabet and Google no longer need two CEOs and a President.”
Pichai also released an email to “Googlers.”
“I want to be clear that this transition won’t affect the Alphabet structure or the work we do day to day,” he wrote.
“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. At the same time, I’m excited about Alphabet and its long term focus on tackling big challenges through technology.”
The statements note that Page and Brin will remain on Alphabet’s board and will be “actively involved.”
According to CNBC, the co-founders still have controlling voting shares of the company. Page has about 5.8 percent and Brin has about 5.6 percent. Pichai owns about 0.1% of the multibillion dollar company.
Alphabet has had its share of controversy over the past few years. Its board reportedly opened an investigation into how executives have handled claims of sexual misconduct, according to CNBC.
There have also been claims against the company by former Google employees who say they were fired just before Thanksgiving allegedly because they were trying to organize workers. They also said they would file charges with the National Labor Relations board over alleged unfair labor practices.
“It’s the end of an era with Larry leaving the keys to the house with Sundar,” Daniel Ives, an analyst at Wedbush Securities told Fortune magazine.
“It’s a natural time for Larry and Sergey to leave since the current restructuring of Alphabet, which started four years ago.”
Investors don’t appear to have been spooked by the surprise resignations. Share prices have edged up slightly in trading today. Alphabet’s stock performance has been at near all-time highs, and they even set a new all time high record, recently.
Pichai noted in his emails to employees that the company is constantly changing and will continue to do so into the future.
“The founders have given all of us an incredible chance to have an impact on the world,” he wrote.
“It’s a strong foundation on which we will continue to build. Can’t wait to see where we go next … “