Larry Page Seth Wenig/AP Google's founders just hit a massive reset button on their business.

In a press release sent out Monday afternoon, cofounder and CEO Larry Page renamed and reorganized the company.

Google has been turned into a subsidiary of a bigger company called Alphabet.

Alphabet will be a parent company that oversees the new initiatives Google has been launching as of late.

Larry Page is CEO of Alphabet. Sergey Brin, Google's other co-founder, is the president of Alphabet.

In the release, Page lays out the priorities for Alphabet. These are his words:

Getting more ambitious things done.

Taking the long-term view.

Empowering great entrepreneurs and companies to flourish.

Investing at the scale of the opportunities and resources we see.

Improving the transparency and oversight of what we’re doing.

Making Google even better through greater focus.

And hopefully ... as a result of all this, improving the lives of as many people as we can.

Sundar Pichai is now CEO of Google. Pichai has been running Google since October. Now, he's officially in charge.

In the release, Page praises Pichai, saying, "It is clear to us and our board that it is time for Sundar to be CEO of Google. I feel very fortunate to have someone as talented as he is to run the slightly slimmed down Google and this frees up time for me to continue to scale our aspirations."

Sundar Pinchai. Reuters/Elijah Nouvelage While this is a bit confusing, and overwhelming, it makes plenty of sense for Google to refashion itself.

The company has been taking bigger and bigger bets in the past few years that have very little to do with the company's original mission of organizing the world's information.

For instance, in July of 2013, Google announced plans to launch a company focused on curing death. That company, Calico, was going to operate as a stand-alone entity.

Calico will be a subsidiary of Alphabet, just like Google.

The other standalone businesses: Nest, which does internet-connected home devices, Google Ventures and Google Capital, which do investing, Fiber, which is doing high-speed internet, and Google X, which has projects like self driving cars.

The rest will still be a part of Google. (Android and YouTube could also be their own subsidiaries of Alphabet eventually, we would think. For now, they belong to Google in the org chart.)

From an organizational perspective, it makes sense for Page to oversee a half-dozen independently running businesses and offer his guidance and direction where possible.

Here's Page on that topic in the release:

Alphabet is about businesses prospering through strong leaders and independence. In general, our model is to have a strong CEO who runs each business, with Sergey and me in service to them as needed. We will rigorously handle capital allocation and work to make sure each business is executing well. We'll also make sure we have a great CEO for each business, and we’ll determine their compensation.

Page was no longer interested in the nitty-gritty of running a business like Google. He wasn't going to be in meetings talking about increasing the cost-per-click. He wasn't going to get geeked over iterative changes to Gmail. He wants to see big fat honking changes happen in the world. This, apparently, was the best way to do that in his opinion.

Where this gets tricky is when you look at earnings. Google is the only company of the bunch that makes any money. Calico is just getting off the ground. The X Labs are by their nature experimental money losers. Nest is probably losing money.

We're not sure how Google employees will feel about supporting all of Alphabet, but that's something Page will have to sort through in the future.

In addition to these big changes, Omid Kordestani, who had been chief business officer is stepping down. He will be an advisor for Alphabet and Google. Kordestani had been in charge of business for the past year. He took over for Nikesh Arora, who stepped down as business chief to join Japanese tech giant Softbank.

Here's the release:

Google Announces Plans for New Operating Structure