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Xbox Chief Asha Sharma to lead US jobs taskforce

Microsoft executive and Xbox CEO Asha Sharma has been appointed to lead a new US Jobs Task Force, a move aimed at helping workers prepare for the changing demands of an economy increasingly shaped by artificial intelligence and emerging technologies.

The announcement comes shortly after Microsoft laid off around 3,200 employees, including staff across several business divisions. While the timing has drawn attention, the company says the new task force is focused on the long-term challenge of equipping workers with skills needed for future jobs rather than responding directly to the recent layoffs.

The task force will bring together leaders from business, education and public policy to identify ways of improving workforce training, expanding digital skills and helping more people adapt to rapidly changing workplaces. Artificial intelligence, automation and other advanced technologies are expected to reshape millions of jobs over the coming years, increasing the need for continuous learning and reskilling.

Sharma, who has held leadership roles across Microsoft’s AI and consumer businesses before taking charge of Xbox, is expected to guide discussions on how technology companies can work with governments and educational institutions to create better employment opportunities.

Industry experts say the appointment reflects a growing recognition that AI will transform the nature of work rather than simply replace jobs. Many companies are now investing in programmes that help employees develop new technical and digital skills to remain competitive in the evolving job market.

The announcement has sparked discussion because it follows Microsoft’s latest round of workforce reductions. While some observers see a contrast between layoffs and the launch of a jobs initiative, others believe the move highlights the need to prepare workers for the next generation of careers shaped by AI and digital transformation.

Microsoft has said it remains committed to investing in artificial intelligence while supporting workforce development through partnerships and training initiatives. The company believes collaboration between businesses, governments and educators will be essential to help workers navigate technological change.

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Leaders

Xbox CEO Asha Sharma announces 3,200 job cuts

Xbox CEO Asha Sharma has announced a major restructuring of Microsoft’s gaming division, with around 3,200 employees set to lose their jobs as the company seeks to build a more focused and sustainable business.

In a message to employees, Sharma said the decision followed lessons from recent investments and highlighted the need to improve efficiency across Xbox operations. She reportedly noted that some investments had not delivered expected returns, with the company losing “64 cents for every dollar” invested in certain areas.

The layoffs will impact teams across Xbox, including game studios and development operations. Microsoft is also reviewing its studio portfolio, with some projects being cancelled or reconsidered as the company prioritises franchises and services with stronger growth potential.

Sharma said the restructuring was aimed at creating a more agile organisation and allowing teams to focus on projects that provide greater value to players and the business.

The move comes as Microsoft continues to reshape its gaming strategy after major investments, including the acquisition of Activision Blizzard and expansion of Xbox Game Pass. The company has been pushing beyond console sales through cloud gaming, subscriptions and multi-platform game releases.

However, the gaming industry has faced growing pressure due to rising development costs, slower market growth and changing player habits. Several global gaming companies have announced layoffs and project cancellations as they attempt to control expenses.

Also Read: Microsoft cuts 4,800 jobs as Xbox restructures

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Leaders

Xbox CEO Asha Sharma plans major layoffs

Xbox is preparing for a significant restructuring that could include substantial job cuts as newly appointed CEO Asha Sharma moves to reshape the gaming business for its next phase of growth.

According to reports, Sharma is expected to lead a broad overhaul of Xbox’s operations, focusing on improving efficiency, simplifying management structures and aligning resources with the company’s long-term strategy. The planned changes come as the gaming industry faces increasing pressure to control costs while investing in emerging technologies and new gaming experiences.

Sources familiar with the matter said the restructuring could result in significant layoffs across various teams within the Xbox division. While the exact number of affected employees has not been disclosed, the move is expected to be one of the most notable organizational changes within the company in recent years.

Sharma, who recently took charge of Xbox, is said to be reviewing multiple aspects of the business, including product development, operations and organizational structure. The goal is to create a more agile and focused gaming division capable of responding quickly to changes in the highly competitive gaming market.

The restructuring follows a period of rapid expansion across Microsoft’s gaming business, including major acquisitions and investments aimed at strengthening Xbox’s position globally. Industry observers note that many technology companies have been reassessing costs and workforce requirements amid changing economic conditions and evolving consumer demand.

Despite the expected layoffs, the broader strategy is believed to focus on strengthening Xbox’s long-term competitiveness. The company continues to invest in areas such as cloud gaming, digital content, artificial intelligence and subscription-based gaming services, which are seen as key drivers of future growth.

Neither Xbox nor Microsoft has publicly provided detailed information about the scale of the planned workforce reductions. However, reports suggest employees could receive more clarity as the restructuring process moves forward in the coming weeks.

The anticipated changes mark an important moment for Xbox as Sharma begins her tenure as CEO.

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