Days after announcing the largest restructuring in Xbox history, CEO Asha Sharma has joined a Federal Reserve task force examining how artificial intelligence and other emerging technologies could reshape jobs, productivity, and the broader economy.
Sharma, who previously worked in Microsoft’s Core AI group before taking over Xbox, 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.
“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 bring together outside experts in economics, business, and central banking to review how the central bank approaches monetary policy. In addition to productivity and jobs, the groups will examine Fed communications, balance sheet policy, economic data, and inflation frameworks.
The appointment comes as Sharma oversees what she called the “most significant restructure in Xbox history,” with plans to 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.
“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.
