The Trump administration on April 17 sent layoff notices to approximately 1,500 staff at the Consumer Financial Protection Bureau, leaving only 200 personnel at the bureau, Fox Business reported.
Most CFPB employees today received notices from Acting Director Russ Vought saying their positions are being eliminated as part of a restructuring “to better reflect the agency’s priorities and mission.” The terminations are effective Friday.
The firings come a day after CFPB leadership circulated an internal memo announcing a shift in the bureau’s supervisory and regulatory activities. Among other things, the memo directed a 50% reduction in the number of supervisory “events,” ended supervision of nonbanks to instead focus on depository institutions, and directed staff to give deference to state regulation and supervision.
On Friday, April 18, U.S. District Judge Amy Berman Jackson temporarily prevented the agency from cutting off the employees’ computer access as planned until she holds a hearing at the end of the month, according to The Hill. “We’re not going to disburse 1,483 people into the universe and have them be unable to communicate with the agency anymore until we have determined whether that is lawful or not,” Jackson said.
A federal appeals court panel on April 28 blocked the Trump administration from moving forward with the mass layoffs, partially lifting a previous order interpreted by the White House as paving the way for the job cuts. The panel on the U.S. Court of Appeals for the District of Columbia Circuit revoked its order allowing the administration to conduct reductions in force of employees if a “particularized assessment” determined their roles were unnecessary for the agency to perform its statutorily required duties. The panel agreed to let Jackson’s injunction barring any major staff reductions to remain while the appeal process continues.
A follow-up hearing was set by Jackson for the end of April.
