Larry Page is Google's new CEO, Schmidt executive chairman

Internet giant Google Inc on Thursday said that co-founder Larry Page would replace Eric Schmidt as chief executive officer in a management reshuffle that took observers by surprise.

The reshuffle was announced along with Google's fourth quarter earnings - which jumped 29 per cent, much more than street estimates.

The Mountain View, Calif, company said the moves, effective 4 April, were made "to streamline decision-making and create clearer lines of responsibility and accountability at the top of the company."

Page takes the reins at a time when Google is striking out in multiple directions with its small businesses, from its online video site YouTube to its large push in mobile advertising with Android. The move seems aimed at making the company more nimble at a time when competition heats up with fast-growing rivals like Facebook.

Page's assumption of day-to-day operations marks a return to Google's technological roots, 13 years after he and fellow Stanford University student Sergey Brin founded what has become the world's top internet search engine with $29 billion a year in revenue.

In the new scheme of things, Brin will concentrate on strategic projects.