Microsoft’s Xbox CEO Joins Federal Reserve Task Force

Asha Sharma, the CEO of Microsoft’s Xbox division, has been appointed to the Federal Reserve’s employment task force. This comes shortly after her announcement of significant layoffs within the gaming sector, raising eyebrows about the connections between Big Tech and government policy.

Sharma took over as CEO in February and her new role on the Task Force on Productivity and Employment brings both interest and skepticism. Just days before this appointment, she disclosed plans to lay off 1,600 employees from Xbox, with an additional 1,250 layoffs anticipated in the near future, marking a potential loss of nearly 5,000 jobs total in the division, which constitutes about 20 percent of its workforce.

In a memo to staff, she emphasized the need for a reset at Xbox, acknowledging, “Our business today is not healthy.”

The Federal Reserve, led by Chairman Kevin Warsh, established five new advisory groups to better navigate economic changes and monetary policy. These groups are exploring various facets of the economy, including productivity and employment, while leveraging insights from outside advisors, including Sharma, in their recommendations.

Warsh highlighted the need for adaptation in response to the shifting landscape of the economy, stating, “The U.S. economy has changed significantly over the past few generations, but never more so than today.” He expressed confidence that the collaborations would enhance the Fed’s effectiveness in achieving its objectives.

The Productivity and Employment Task Force, where Sharma serves, will evaluate the economic implications of emerging technologies like AI to guide Federal Reserve policy. She will work alongside prominent figures such as venture capitalist Marc Andreessen and Stanford University economics professor Charles I. Jones.

Sharma’s role is controversial, mainly because she remains an active CEO at a major corporation while advising the Federal Reserve. This appointment is seen by some as indicative of Big Tech’s increasing involvement in government, a trend that is drawing scrutiny.

Furthermore, the timing of her appointment has sparked criticism given the recent layoffs at Xbox, showcasing a challenging environment in the gaming industry. Her rapid ascendance as CEO, combined with her lack of gaming experience, has also raised questions among observers.