Federal Reserve appointed Xbox CEO Asha Sharma to its Productivity and Jobs task force on Thursday, days after Xbox announced plans to cut 3,200 roles in the largest restructuring in the company's history. The task force will study how artificial intelligence and other emerging technologies could reshape jobs, productivity, and the broader economy as part of the central bank's approach to monetary policy. Sharma, who previously worked in Microsoft's Core AI group, joins Marc Andreessen, co-founder and general partner at Andreessen Horowitz, and Charles I. Jones, a Stanford University economics professor currently on leave at Anthropic, on the task force examining the economic impact of new general-purpose technologies.
Federal Reserve Task Force Examines AI Impact on Economy
The Federal Reserve established five task forces to review how the central bank approaches monetary policy, bringing together outside experts in economics, business, and central banking. The Productivity and Jobs task force, which Sharma now serves on, focuses specifically on how new general-purpose technologies including AI affect economic outcomes.
"The U.S. economy has changed significantly over the last generation, and never more so than right now," Federal Reserve Chairman Kevin Warsh said. "Each task force will carefully consider whether policymakers' means and methods, analytical tools and policy approaches can be improved upon."
According to the Fed, the five task forces will examine Fed communications, balance sheet policy, economic data, inflation frameworks, and productivity and jobs. The groups will review whether the central bank's analytical tools and policy approaches require updates given recent economic changes.
Xbox Announces 3,200 Job Cuts Through FY27
Sharma's appointment follows Xbox's announcement that it will reduce the division's workforce by approximately 3,200 employees through FY27. The cuts begin with 1,600 role eliminations, while four studios will leave Xbox for new management.
In a letter to employees earlier this week, Sharma said Xbox's business was "not healthy," citing lower margins than comparable platform and publishing businesses, a smaller Gen 9 console install base, and higher costs.
"I know this is painful. These changes will directly affect people who have poured their creativity into building XBOX," she wrote. "Many joined us through acquisitions, while others were recruited here, or sought us out because they loved this industry and loved XBOX. Today's decisions do not reflect their talent or dedication."
Sharma said Xbox's investments in Game Pass, multi-platform releases, and a broader content portfolio created value but did not grow as quickly as expected. As the business expanded, she said Xbox added more teams and investment while its core business weakened.
"We must reset Xbox," Sharma wrote.
Tech Companies Cut Thousands of Jobs Amid AI Investment Push
Sharma's appointment comes amid growing scrutiny over how AI is reshaping the workforce as tech companies invest heavily in automation while restructuring teams. In April, Snap cut roughly 1,000 jobs, roughly 16% of its staff, as it increased its focus on AI-powered tools.
Meta announced it would reduce headcount by 10%, around 8,000 jobs, as CEO Mark Zuckerberg pushes the company deeper into artificial intelligence.
In June, California launched an AI unemployment tracker to monitor whether automation is contributing to job losses. A Federal Reserve study earlier this year found U.S. programming job growth slowed significantly following the launch of ChatGPT, estimating that roughly 500,000 developer jobs that would have otherwise existed were never filled.
FAQ
What is the Federal Reserve's Productivity and Jobs task force?
The Productivity and Jobs task force is one of five groups established by the Federal Reserve to review how the central bank approaches monetary policy. The task force brings together outside experts in economics, business, and central banking to study how artificial intelligence and other emerging technologies could reshape jobs, productivity, and the broader economy. Xbox CEO Asha Sharma, Marc Andreessen of Andreessen Horowitz, and Stanford economist Charles I. Jones serve on the task force.
How many jobs is Xbox cutting in its restructuring?
Xbox announced plans to cut approximately 3,200 roles through FY27 in what CEO Asha Sharma called the "most significant restructure in Xbox history." The cuts begin with 1,600 role eliminations, while four studios will leave Xbox for new management. Sharma cited lower margins than comparable platform and publishing businesses, a smaller Gen 9 console install base, and higher costs as reasons for the restructuring.
How are other tech companies cutting jobs while investing in AI?
In April, Snap cut roughly 1,000 jobs, roughly 16% of its staff, as it increased its focus on AI-powered tools. Meta announced it would reduce headcount by 10%, around 8,000 jobs, as CEO Mark Zuckerberg pushes the company deeper into artificial intelligence. A Federal Reserve study earlier this year found U.S. programming job growth slowed significantly following the launch of ChatGPT, estimating that roughly 500,000 developer jobs that would have otherwise existed were never filled.
