Google's Page makes first changes to management

Google Inc. CEO Larry Page, in his first major reorganization since taking the reins as CEO, moved to streamline decision-making at the key social network, mobile, Internet software and Youtube product groups.

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, according to a source familiar with the matter who confirmed changes first reported in The Los Angeles Times.

Also given a direct line to Page - who officially assumed his role on Monday - were search senior vice president Alan Eustace and advertising chief Susan Wojcicki, the source said.

A Google spokesman confirmed that there had been a management reorganization at the company, but declined to provide details. The spokesman noted that it had been very clear when the CEO change was announced in January that Page was looking to streamline the way the company is run and to make clear lines of accountability.

Investors had predicted bold and aggressive moves by Page to whittle down red tape at Google, and a renewed focus on search, mobile and technological innovation, following a decade under the leadership of former CEO Eric Schmidt. But some feared Page, who cofounded Google while a computer graduate student at Stanford in 1998, would neglect the crucial CEO's task of managing the expectations of Wall Street.

The changes point to major areas of focus for the company, which dominates Internet search and advertising but is increasingly expanding - with mixed success - into social networking and mobile software.

Google is the world's No. 1 search engine and generated roughly $29-billion in revenue in 2010. But the company is facing increasing competition from social networking site Facebook and iPhone-maker Apple Inc.

The management changes at Google also come days after the departure of Senior Vice President of Product Management Jonathan Rosenberg, who according to the company had intended to leave in the next year or two regardless. Of the promoted executives, several had reported to Rosenberg.

Shares of Google were up 0.3 per cent at $581.80 Friday afternoon.