Xbox CEO Asha Sharma joined a Federal Reserve task force examining artificial intelligence's impact on jobs and productivity on Thursday, days after announcing Xbox will cut 3,200 roles through FY27. Sharma will serve on the Fed's Productivity and Jobs task force studying economic impacts of general-purpose technologies including AI as part of the central bank's monetary policy approach. The appointment follows Xbox's announcement earlier this week of what Sharma called the "most significant restructure in Xbox history," driven by lower margins than comparable platform businesses, a smaller Gen 9 console install base, and higher costs, as tech companies across the industry reduce headcount while investing in AI-powered automation.
Federal Reserve Appoints Sharma to Productivity and Jobs Task Force
The Federal Reserve announced on Thursday that Sharma will serve on its Productivity and Jobs task force examining how AI and other emerging technologies could reshape jobs, productivity, and the broader economy. Sharma 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.
Federal Reserve Chairman Kevin Warsh said the five task forces will bring together outside experts in economics, business, and central banking to review how the central bank approaches monetary policy. "The U.S. 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."
According to the Fed, the task forces will examine Fed communications, balance sheet policy, economic data, inflation frameworks, and productivity and jobs. Sharma previously worked in Microsoft's Core AI group before taking over Xbox.
Xbox Announces 3,200 Role Cuts Through FY27
Xbox plans to reduce its workforce by approximately 3,200 employees through FY27, beginning with 1,600 role eliminations. Four studios will leave Xbox for new management as part of the restructuring.
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, Xbox added more teams and investment while its core business weakened. "We must reset Xbox," Sharma wrote.
Tech Industry Reduces Workforce Amid AI Investment
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 said 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 task force did Xbox CEO Asha Sharma join on Thursday?
Asha Sharma joined the Federal Reserve's Productivity and Jobs task force on Thursday, which will study the economic impact of general-purpose technologies including AI as part of the central bank's approach to monetary policy. She serves alongside Marc Andreessen and Stanford economist Charles I. Jones.
Why is Xbox cutting 3,200 jobs through FY27?
Xbox announced it will cut approximately 3,200 roles through FY27, beginning with 1,600 eliminations, because CEO Asha Sharma said the business was "not healthy." She cited lower margins than comparable platform and publishing businesses, a smaller Gen 9 console install base, and higher costs as the reasons for the restructuring.
How has AI affected tech industry employment according to the Federal Reserve?
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. California launched an AI unemployment tracker in June to monitor whether automation is contributing to job losses.
