Asha Sharma Fires Thousands of XBOX Employees and the Next Day the Fed Hires Her: Here's Why

Asha Sharma, CEO of Xbox, has been chosen as a consultant for the Federal Reserve of the United States for the task force dedicated to productivity and employment.

The appointment is part of the creation of five task forces established by the American central bank with the goal of improving economic analysis and supporting monetary policy decisions.

The Federal Reserve explained that the group Sharma will be part of will also focus on the impact of new general-purpose technologies, including artificial intelligence, on economic dynamics. The aim will be to assess how these changes may influence productivity, the labor market, and the institution's future strategies. The task forces will work with the support of Federal Reserve staff but will operate independently.

Their task will be to gather information, analyze data, and provide in-depth assessments to the Federal Open Market Committee, the body responsible for major decisions of the central bank. The criteria used to choose the consultants have not been made public. Sharma is noted to be the only currently active CEO among the members appointed to the five groups. Among the other executives involved is Doug McMillon, former CEO of Walmart, who will provide consultation in the area dedicated to data.

Asha Sharma and Her New Role, Additional Details

However, the choice of the executive comes at a particularly delicate moment for Xbox and Microsoft. In the same week as the appointment, Sharma carried out a significant reorganization of the gaming division, with an initial wave of about 1,600 layoffs expected to reach up to 3,200 jobs by the end of Microsoft's fiscal year.

Official communications regarding the cuts subsequently revealed further details, showing staff reductions at various studios linked to Xbox, including ZeniMax Online and id Software. Before becoming CEO of Xbox in early 2026, Sharma had served as president of Microsoft’s CoreAI products. Previously, she also worked at Facebook as vice president for product and engineering, handling Messenger and Instagram Direct.

Federal Reserve Chairman Kevin Warsh stated that the institution wants to continue improving tools and methods of analysis to address a profoundly changed economy, especially during a phase characterized by the rapid growth of artificial intelligence.