West Virginia Rep. Riley Moore has sent a letter to Federal Reserve Chair Kevin Warsh demanding that Xbox CEO Asha Sharma be removed from a Federal Reserve task force focused on productivity and jobs, escalating criticism over her appointment after Microsoft announced thousands of job cuts at its gaming division.
Moore’s latest move comes days after Sharma announced that Xbox would cut an additional 3,200 jobs as part of a broader restructuring of Microsoft’s gaming business.
The Republican congressman has questioned why Sharma was selected for a Federal Reserve advisory role focused on jobs while the Xbox division under her leadership is undergoing significant layoffs.
READ: Xbox CEO says 3,200 more jobs to be cut in FY27 (July 7, 2026)
Sharma was named one of the co-leaders of the Federal Reserve’s Productivity and Jobs Task Force, which is examining the economic impact of emerging technologies, including artificial intelligence, and their implications for the central bank’s policy decisions.
The appointment drew criticism after Microsoft announced plans for thousands of job cuts at Xbox. Moore subsequently questioned the decision in a social media post, writing that the “first question should be why Xbox CEO Asha Sharma” was selected for the Fed task force while the company was cutting American jobs and hiring workers through the H-1B visa program.
In his letter to Warsh, Moore called for Sharma’s removal from the task force, arguing that her recent corporate decisions raise questions about her suitability for an advisory position centered on productivity and employment.
The development follows two earlier reports by The American Bazaar on Microsoft’s restructuring of its gaming operations.
Microsoft announced in early July that it was cutting about 4,000 jobs as Xbox restructured its studios and operations. The company later announced plans for another 3,200 job cuts in fiscal 2027, according to the earlier reports.
The layoffs have affected employees across Microsoft’s gaming business and come as the company continues to reorganize its Xbox operations while increasing its focus on profitability and efficiency.
Sharma, who became CEO of Microsoft Gaming earlier this year, has defended the restructuring as part of an effort to reset the Xbox business and establish a clearer focus for its future.
Her appointment to the Federal Reserve task force came amid the layoffs, prompting questions from lawmakers and others about the decision to bring an active corporate executive overseeing a major workforce reduction. This group is tasked with examining productivity and jobs.
READ: Microsoft cuts 4,000 jobs as Xbox restructures studios (July 6, 2026)
The Federal Reserve has established five task forces, with the Productivity and Jobs group examining the economic effects of new general-purpose technologies such as artificial intelligence. Sharma is serving alongside Stanford economist Charles I. Jones and venture capitalist Marc Andreessen, according to reports on the appointments.
Fed Chair Kevin Warsh said the task forces would provide outside expertise and help evaluate whether the central bank’s analytical tools and policy approaches could be improved.
The controversy surrounding Sharma’s appointment has also drawn attention to the broader debate over the impact of artificial intelligence, automation and corporate restructuring on the U.S. workforce.
Moore’s intervention adds a congressional dimension to the controversy, placing renewed scrutiny on Sharma’s dual role as the head of a major technology business undergoing layoffs and as an adviser to the Federal Reserve on productivity and employment.
The Federal Reserve has not indicated that Sharma’s appointment will be reconsidered. Moore’s demand now puts the decision under further political scrutiny as the central bank’s task forces begin their work.