A major reorganization under Page was expected. Page reportedly wanted Google to function more as a startup by eliminating politics and bureaucracy with a streamlined leadership team, which would help speed up product innovation.

This move is aimed at empowering the new executives with more authority, and was inspired by the success of the Android and YouTube units, which function autonomously within Google. Now every effort won't have to go through Google's operating committee.

Seems the changes were well received. The Times says, "the leadership changes have been met with enthusiasm on Google's Mountain View, Calif., campus, where sources say energy is running high."

The Times also noted that "Page and fellow Google co-founder Sergey Brin, who is focused on major strategic initiatives, have offices next to each other in a recently renovated building on the campus. They are down the hall from executive chairman Eric Schmidt and surrounded by engineers working at key products for Google."

This shakeup follows yesterday's news of Page's major gamble on social, telling employees that the success of social would be tied to their 2011 bonus.