Google's co-founders Sergey Brin (left) and Larry Page announced the creation of a new company on Monday called Alphabet, and said they will serve as Alphabet's president and CEO, respectively.
"Our company is operating well today, but we think we can make it cleaner and more accountable. So we are creating a new company, called Alphabet (http://abc.xyz)," Page wrote on the company's official blog Monday.
The parent company's minimalistic website hints at the new structure with old-fashioned letter blocks -- G is for Google.
"Alphabet is mostly a collection of companies. The largest of which, of course, is Google," CEO Larry Page said.
The new Alphabet logo continues the company's minimalistic approach to design.
"Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related," said Larry Page.
Sundar Pichai, 43, is CEO of the new "slimmed down" Google.
Pichai is currently Google's senior vice president of products -- overseeing product management, engineering and research for the company's products and platforms.
Under the new operating structure, the core Google business will include search, ads, maps, apps, YouTube and Android.
"This newer Google is a bit slimmed down, with the companies that are pretty far afield of our main Internet products contained in Alphabet instead," Page wrote.
Larry Page, seen here on stage at Google I/O in 2013, will become the CEO of Alphabet, while Sergey Brin will become the president.
Together, they will "rigorously handle capital allocation and work to make sure each business is executing well."
Under the new Alphabet structure, businesses such as Nest, which makes smart devices for the home, will be managed separately from the core Google business.
Another Alphabet company will be Fiber, which offers 1,000 megabits per second Internet connections in nine US cities today.
Will Google's headquarters -- now often referred to as "the Googleplex" get a new nickname? How long before everyone starts calling it "the Alphabet blocks"?
Google's capital funding arm, Google Ventures, will become Ventures -- one of the businesses to be broken out and placed under the new Alphabet parent company.
Google's growth equity fund, now called Capital, will also fall under the new Alphabet umbrella.
Some of Google's more ambitious 'moonshot' efforts will now fall under Alphabet. These include Google X, which developed Google Glass and the Wings drone-delivery projects, as well as Life Sciences (for glucose-sensing contact lenses) and Calico (which is focused on longevity).
X will be run by Sergey Brin.