In the last few days alone, two top-level executives at the world’s largest online search company, Google, announced they would be stepping down from their posts due to personal reasons.
Chad Hurley, now 33 years old, was the first executive to announce he would step down from his position as the chief executive officer at YouTube, the same company he founded which was later acquired by the search giant for $1.65-billion in an all cash deal.
Mr. Hurley founded YouTube along with co-founders Steve Chen and Jawed Karim, who also had positions at Google but later left the company.
Mr. Hurley earned $345-million alone as a result of the Google acquisition, which included terms that he would continue working at the company as CEO.
Although Google consolidates revenue from its properties into a single account, executives previously said they expected YouTube to begin turning a profit in the short-run, confirming the almost six-year-old site is still not profitable.
Extensive operating costs and marginal advertising revenue in the economic downturn have made it a challenge for YouTube to turn a profit.
In the latest earnings conference discussion, Google said YouTube is now serving more than 2-billion videos every week.
Google faced litigation challenges over copyright infringement allegations made by publishers, but those lawsuits were dismissed as the company was found to have taken reasonable care to mitigate any losses by promptly removing indicated videos from YouTube.
In a clear attempt by Google to finally turn a profit for YouTube, the company has appointed Salar Kamangar to succeed Mr. Hurley as the new chief executive of YouTube effective now.
Mr. Kamangar will be responsible for growing YouTube by generating more revenue through content partnerships and by managing primary revenue streams like advertising, which generate less than 10-percent of total advertising revenue for Google annually.
In an attempt to generate more revenue, the company has experimented with new forms of advertising to increase click-through rates, such as by placing advertisements directly into videos, something users find very intrusive.
The Internet landscape has effectively changed as tech-savvy Internet users now click less on advertisements, and the value of ads has also decreased over the last few years as new advertising networks have emerged and as companies spend less due to increasing economic volatility.
Mr. Kamangar faces a challenging job ahead of him at netting the first profit for the company.
He needs to ensure the user experience at YouTube does not diminish in a frugal attempt to marginally increase click-rates from more intrusive ads.
Mr. Kamangar already works at Google as the vice president of Google Web Applications.
The company has not said if Mr. Kamangar would be the permanent new CEO at YouTube.
The second top executive at Google to be stepping down in the coming weeks is Omar Hamoui, who co-founded the mobile advertising network AdMob in 2006, the same company Google scooped up for $750-million last May.