Federal Reserve taps Xbox CEO Asha Sharma to lead jobs task force days after Microsoft laid off 3,200 people
A hot potato: Xbox CEO Asha Sharma has been chosen to co-lead a Federal Reserve task force examining productivity and employment. Somewhat ironically, her new advisory role comes only three days after Microsoft unveiled the largest restructuring in Xbox’s history, which will eliminate 3,200 positions and immediately put 1,600 people out of work.
The Productivity and Jobs panel is one of five new task forces created by Federal Reserve Chairman Kevin Warsh to examine areas central to monetary policy. The others will focus on communications, balance sheet policy, economic data, and inflation frameworks.
Sharma will lead the group alongside Andreessen Horowitz co-founder Marc Andreessen and Stanford economics professor Charles I. Jones, who is currently on leave at Anthropic. Its job is to assess how general-purpose technologies, including artificial intelligence, are affecting productivity, employment, and economic growth, with the findings used to help inform future Federal Reserve policy.
The groups will be supported by Federal Reserve staff but operate independently. They’ve been told to follow the evidence, provide candid feedback, and produce findings for the Federal Open Market Committee. Updates on their progress will be posted periodically.
“The Federal Reserve’s commitment to price stability and maximum employment is unwavering. As is our resolve to pursue our mandate with rigor. The US economy has changed significantly over the last generation, and never more so than right now,” Warsh said. “Each task force will carefully consider whether policymakers’ means and methods, analytical tools, and policy approaches can be improved upon. I am honored that the best minds from a range of disciplines have agreed to work with us to sharpen our performance as an institution.”
Sharma’s appointment is raising some eyebrows given what happened at Xbox last week. Microsoft plans to eliminate around 3,200 positions across its gaming division between now and July 2027, with 1,600 employees losing their jobs immediately.
The restructuring also involves spinning off Compulsion Games and Double Fine, while Ninja Theory and Undead Labs are being sold. Bethesda, ZeniMax, id Software, Activision, Obsidian, and Microsoft’s accessibility team are among the groups facing deep cuts.
The panel will also examine AI’s impact on jobs. Sharma has a lot of experience in this area, given that Microsoft has spent billions of dollars expanding its AI infrastructure while repeatedly reducing its workforce. It’s just one of many tech companies cutting employees as more resources are redirected toward automation and data centers.
Sharma moved from Microsoft’s CoreAI division to become Xbox CEO earlier this year. In the first few months of her tenure, she has overseen another hardware price increase, falling Game Pass membership, and what Microsoft describes as the most significant restructuring in Xbox history.
The Federal Reserve has not said when the task forces will publish their final findings, only that more information will appear on its website periodically.
Image credit: Adam Fagen