Summary
- Asha Sharma, CEO of Xbox, has been appointed to a Federal Reserve task force focused on AI's effects on employment and productivity.
- She joins notable figures like Marc Andreessen and Charles I. Jones in the Productivity and Jobs group.
- This appointment comes just after Xbox announced it would eliminate 3,200 jobs as part of a major restructuring effort.
Shortly after revealing the largest restructuring in Xbox's history, CEO Asha Sharma has been named to a Federal Reserve task force that will explore the influence of artificial intelligence and other emerging technologies on jobs, productivity, and the economy at large.
On Thursday, the Federal Reserve announced Sharma's role within its Productivity and Jobs task force, which aims to assess the economic ramifications of new general-purpose technologies, including AI, as part of its monetary policy strategy.
Sharma, who previously served in Microsoft’s Core AI division before taking the helm at Xbox, will collaborate with Marc Andreessen, co-founder of Andreessen Horowitz, and Charles I. Jones, an economics professor at Stanford University currently on sabbatical at Anthropic.
“The U.S. economy has undergone remarkable changes over the past generation, particularly at this moment,” stated Federal Reserve Chairman Kevin Warsh. “Each task force will thoroughly evaluate how policymakers' methods, analytical tools, and policy strategies can be enhanced.”
The Federal Reserve indicated that the five task forces will gather external experts in economics, business, and central banking to reassess its monetary policy approach. Beyond productivity and employment, these groups will delve into Fed communications, balance sheet policy, economic data, and inflation strategies.
This appointment coincides with Sharma's management of what she described as Xbox's “most significant restructure in history,” which includes plans to reduce the workforce by around 3,200 employees by FY27. The initial phase involves eliminating 1,600 positions, alongside transitioning four studios to new management.
In a message to staff earlier this week, Sharma expressed that Xbox’s operations were “not healthy,” pointing to lower profit margins compared to similar platforms and publishing companies, a limited Gen 9 console user base, and escalating costs.
“I recognize this is difficult. These changes will directly impact individuals who have devoted their creativity to developing XBOX,” she stated. “Many joined us through acquisitions, while others were recruited here, or sought us out because they loved this industry and loved XBOX. The decisions made today do not reflect their talent or commitment.”
Sharma noted that while Xbox's investments in Game Pass, multi-platform releases, and an expanded content portfolio added value, growth did not meet expectations. As the business grew, she mentioned that Xbox expanded its teams and investments even as its core business weakened.
“We must reset Xbox,” Sharma emphasized.
This appointment comes amid increasing concerns regarding AI's impact on the job market, as technology companies heavily invest in automation and restructure their teams. In April, Snap cut approximately 1,000 jobs, roughly 16% of its workforce, to enhance its focus on AI-driven tools. Similarly, Meta plans to reduce its staff by 10%, eliminating around 8,000 jobs as CEO Mark Zuckerberg pushes for a deeper integration of artificial intelligence within the company.
In June, California launched a tracker to monitor AI-related unemployment, while a Federal Reserve study earlier this year indicated that U.S. programming job growth significantly decelerated after the introduction of ChatGPT, estimating that around 500,000 developer positions that would have otherwise been created were left unfilled.