More workers are fired at CFPB as staff fear mass layoffs: NPR

About 70-100 employees at the Consumer Financial Protection Bureau were fired Thursday, according to three current employees with knowledge of the situation they didn’t want to be identified because they were afraid of being fired.

The fired employee is a term employee and means a career staff member whose position is a defined length of time. Their end comes after the CFPB recently fired 73 employees earlier this week, as reported by NPR.

Two layoff letters shared with NPR by current and former staff members have implemented the White House dated February 11, 2025 to implement the “President’s Government Efficiency Bureau” Workforce Optimization Initiative. He said it was finished to do so. . ”

CFPB staff say on Friday that much wider cuts are planned for the organization.

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Laurel Wamsley covers what’s going on with the CFPB. If you have any hints, you can get a good contact with her at Laurel’s signal.

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Many people and external consumer advocates at the Bureau say it is impossible to carry out the Bureau’s legal duties if the staff size is significantly reduced.

Before the recent cuts, the department had around 1,700 employees. Earlier this week, approximately 73 probation employees (employees who had been working for less than a year or two) ended.

The National Treasury Employees Union, representing CFPB staff, filed a lawsuit against Russell Vought for his ability as the CFPB’s representative director. Participants in the complaints include the National Consumer Law Center and NAACP.

In the complaint, the plaintiff wrote: “The defendant is also preparing to launch another mass shooting at this time of more than 95% of the department’s employees, which would make it impossible for the department to meet legally necessary functions.” I’m writing it.

CFPB has been a target for a long time

Congress created the CFPB as part of the bipartisan Dodd Frank Act, accompanied by the 2008 financial crisis, and the bureau has many legally mandated responsibilities. An analysis by the Student Borrower Protection Center and the American Consumer Federation lists 87 Congressional mandates that the CFPB must meet.

These legal duties range from their high level of mission. The Bureau “restricts the provision and provision of consumer financial products or services under the Federal Consumer Financial Act.” There are also specific requirements. For example, the CFPB should establish an office that collects and monitors consumer complaints via a website and a free phone number.

The Trump administration and the Elon Musk Department’s government efficiency team, although not official, have put effort and attention on the recent CFPB, following the same playbook that they mostly used to destroy USAID.

At USAID, all but a small number of staff were placed on administrative leave in a move that was suspended by federal judges until at least February 21st.

The CFPB layoffs come when President Trump nominates Jonathan McCernan as his next manager. He replaced Vought, the architect of Project 2025, and the White House budget director, who was appointed proxy director late last week.

The CFPB has been in Tumult since last week. Staff were ordered by Vought to suspend all work and the department’s headquarters were closed that week.

Many Republicans have long wanted to remove the agency since its inception. It also opposes many executives in Wall Street and Silicon Valley, and says it is too resistant to regulation of banks, payment apps and other financial products and services.

The Bureau is part of the federal system and receives funds from the Federal Reserve.