The Federal Reserve has appointed Xbox CEO Asha Sharma to lead a new task force on employment and productivity — just three days after she announced plans to lay off 3,200 employees.
Sharma will be one of three leaders heading up the Productivity and Jobs task force, which will “assess the economic impact of new general-purpose technologies, including artificial intelligence, to inform the Federal Reserve’s policy judgments.”
The announcement has raised eyebrows given the timing. On July 6, Sharma announced an Xbox “reset” that will see roughly 3,200 employees lose their jobs by the end of the 2027 fiscal year. Remaining developers are reportedly convinced the reorganization will cause irreparable damage to some of Microsoft’s most valuable gaming brands.
The Task Force
The Federal Reserve announced the creation of five task forces intended to evaluate and improve its operations. Federal Reserve Chairman Kevin Warsh named the “external advisers” who will lead each task force, ranging from economics professors to AI investors and corporate executives.
Sharma will be joined by Stanford economics professor Charles I. Jones — “currently on leave at Anthropic” — and Marc Andreessen, a major AI investor and tech venture capitalist.
“The Federal Reserve’s commitment to price stability and maximum employment is unwavering. As is our resolve to pursue our mandate with rigor,” Warsh said in a press release. “Each task force will carefully consider whether policymakers’ means and methods, analytical tools, and policy approaches can be improved upon.”
The Optics Problem
The timing of the appointment has drawn criticism. Sharma’s layoff announcement, which came just days before her Fed appointment, has led some to question whether a CEO who just cut thousands of jobs is the right person to lead a task force on employment.
According to the announcement, Sharma will now also have Mojang and King — two of Xbox’s most valuable operations — reporting directly to her, raising questions about how she will find time to lead the Fed task force.
The Fed has said updates on the task forces’ work will be “posted periodically” on its website.
The Bottom Line
The Federal Reserve has appointed Xbox CEO Asha Sharma to lead a task force on employment and productivity, days after she announced plans to lay off 3,200 employees. Sharma will be joined by Stanford economics professor Charles I. Jones and tech investor Marc Andreessen. Critics have questioned the timing and optics of the appointment. Sharma’s layoff announcement is part of a broader “reset” at Xbox that has concerned remaining employees.
