Larry Page and Sergey Brin, the co-founded Google, stepped down on December 3, 2019, after serving the company for 21 years. The CEO of Google, Sundar Pichai took over the vacant positions and will lead Google and its parent company, Alphabet.
Google’s Poor handling of Employee’s Problems
Alphabet Inc. was started in 2015 as the parent company of Google and Google’s founders were assigned to lead the parent company to look after other subsidiaries.
Page became the CEO of Alphabet, while Brin was the President. After the resignation of the two founders, the company has removed the President’s post and Pichai will be the CEO of both companies.
The reassigning of the managerial board of Alphabet was a part of Google’s strategy to handle the existing problems of Google and its employees. The founders had been under attack, as they overlooked numerous problems of the employees’ and denied employee’s complaints against the company’s policies.
Several Google employees across the global quit their jobs as a protest against the company’s decision of Andy Rubin’s $ 90 million exit package. Rubin worked as a Senior Vice President at Google and resigned from the company in 2014, after a sexual misconduct case filed against him.
As reported by the New York Times, “Google reportedly paid to former Android leader Andy Rubin despite finding sexual misconduct claims against him to be credible.” Under the pressure from employees, Google has already declined certain projects.
The company stopped renewing the cloud programming contract with the Department of Defense in March 2019, as a petition was signed by thousands of employees to avoid Google involving in the “business of war”.
Active Participation of the Founders in Alphabet
Announcing the change of the company’s CEO, Page wrote a post, “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.”
Brin also commented, “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.”
According to Page, “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!”
Nevertheless, both the founders will be working as members of the Alphabet’s board and remain actively involved in the decision making of the company. Google officials announced that the change in the managerial board; however, would not change the existing decision-making structure of the company.
The co-founders will still have a majority of their voting shares in the company. Page holds about 5.8% shares of Alphabet, Brin 5.6%, while Pichai constitutes nearly 0.1% share.
Pichai’s Responsibilities of Other Subsidiaries
Other Alphabet’s subsidiaries, Waymo and Verily, recently faced a sharp decline in their digital advertising business. According to Google, the advertising revenue of the subsidiaries generated a lower profit as compared to that in 2018. Moreover, the company generated less revenue from the hardware business.
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