Google is making a major organization restructuring and it involves creating a company called Alphabet.
Alphabet will eventually serve as the parent company of Google and all of its other operating units like YouTube, Android, Google Ventures, Google Capital, Calico, Nest and the X Division, to name a few.
Each business will autonomously operate under the Alphabet umbrella, each with their own CEOs running the units.
Google is now worth some $445 billion, and its organizational structure is growing and becoming more complicated to manage, especially since it also continues to pursue new business ventures and industries that are already quite far from what Google started off with.
"Fundamentally, we believe this allows us more management scale, as we can run things independently that aren't very related," Google CEO Larry Page wrote in a blog post, according to Wall Street Journal.
Page will be the CEO of Alphabet, co-founder Sergey Brin will be president and Google executive Sundar Pichai will be CEO of the core Google business, Fox News reports.
The new structure will allow the company to manage resource allocation effectively, especially for businesses that are performing at their best. It will also allow for the company to spin off various businesses it deems ready to stand alone and thus go public, Forbes reports.
Calico, Nest, Fiber and Google X are some of the businesses that will operate separately under Alphabet. It will also oversee Google Ventures and Google Capital.
YouTube will remain as part of the core business under Google, as it is deemed "not yet ready" to operate on its own, ABC News reports.
