Xbox CEO joins Fed task force on AI jobs after 3,200 layoffs

The juxtaposition of Xbox's 3,200-person layoff and CEO Asha Sharma's simultaneous appointment to the Federal Reserve's AI and jobs task force highlights a central tension in corporate America's response to artificial intelligence. While many tech and gaming leaders are using AI to reduce headcount, they are also gaining seats at the table where federal policy on AI's employment impact is being drafted. Sharma's timing—accepting the Fed role within days of the announcement—places her in a position of influence over national AI labor strategy even as her own company implements one of the year's largest workforce reductions. The task force's remit to shape Federal Reserve thinking on AI and employment for the next decade suggests policymakers believe high-level corporate participation is essential, even when those same executives are actively cutting jobs.