Xbox CEO Asha Sharma Joins Federal Reserve AI Task Force Amid Layoffs

On July 10, 2026, the Federal Reserve announced the appointment of Asha Sharma, CEO of Xbox, to its Productivity and Jobs task force. The task force is set to examine how artificial intelligence (AI) and other technologies may affect employment and overall productivity in the U.S. economy. Sharma's appointment comes in the context of Xbox's announcement that it will cut 3,200 positions as part of a major restructuring effort, which she called the "most significant restructure in Xbox history."

This restructuring at Xbox is marked by an initial elimination of 1,600 roles and a shift of four studios to new management. Sharma attributed the workforce reduction to several factors, including lower profit margins compared to similar businesses, a dwindling user base for the current console generation, and rising operational costs. In a message to employees, she stated, "I know this is painful. These changes will directly affect people who have poured their creativity into building Xbox into what it is today."

The Federal Reserve's task force aims to gather insights from experts in various fields to better understand how emerging technologies impact monetary policy. Alongside Sharma, prominent figures like Marc Andreessen and Stanford economist Charles I. Jones will also contribute to this initiative. Federal Reserve Chairman Kevin Warsh expressed the necessity of evolving policymaking tools to keep pace with the rapid changes in the economy, emphasizing a comprehensive review of the Federal Reserve's approaches to balance sheet policy and inflation frameworks.

This development raises questions about the future of job markets in tech-heavy sectors and underscores the challenge of integrating AI into existing economic frameworks. The success of this task force could guide how policymakers manage transition periods for workers affected by automation and technological advancements.