KEY POINTS
- The agency is expected to be left with only around 200 employees
- The CFPB reportedly sent termination emails to workers in a bid to cut some 1,500 employees
- Multiple groups have expressed opposition to the layoffs, challenging its legality
Only around 200 employees are expected to remain at the Consumer Financial Protection Bureau (CFPB) amid plans to lay off the majority of its workers as part of U.S. President Donald Trump's government downsizing.
The CFPB enforces federal consumer financial laws and also monitors financial markets. It helps ensure that consumer financial markets benefit Americans and also ensures fair competition among service providers.
CFPB to Cut Majority of Workers
The enforcement agency is due to lay off some 1,500 employees, leaving only around 200 federal workers, The Associated Press reported, citing an administration official who wasn't authorized to disclose the figure in public and spoke on condition of anonymity.
Employees have already started receiving layoff notices, as per the report, and access to agency systems among affected workers ends Friday evening.
According to the termination emails, the layoffs were carried out "in accordance with reduction-in-force (RIF) procedures."
The layoffs were "necessary" for restructuring and re-aligning the agency's priorities and mission, said Acting CFPB Director Russ Vought in the emails, as per the notices seen by Bloomberg.
Notably, the CFPB has been under the watchful eye of the Department of Government Efficiency (DOGE), led by tech billionaire Elon Musk.
The DOGE, which reports directly to the president, has been auditing various federal agencies, including the CFPB. Musk has also repeatedly said that many federal jobs were unnecessary and there was a lot of funding waste in the federal government.
Groups Blast Trump Admin for CFPB Layoffs
Some groups have since expressed solidarity with the affected CFPB employees and also criticized the Trump White House for its actions.
The National Treasury Employees Union urged a federal judge to block the bid to shut down the Bureau, saying the move was "unfathomable" and workers were not given enough time to prepare for the elimination of their jobs before the notices were sent out.
The More Perfect Union said the layoffs will mean that the Bureau's ability to "carry out its mission of overseeing financial institutions and regulating companies that scam consumers" will largely be limited.
BREAKING: The Consumer Financial Protection Bureau is firing 1,500 workers, and will soon have only about 200 remaining.
— More Perfect Union (@MorePerfectUS) April 17, 2025
That means the CFPB will be largely unable to carry out its mission of overseeing financial institutions and regulating companies that scam consumers.
Advocacy nonprofit the American Economic Liberties Project also said leaving only 200 employees "puts critical consumer protection at risk" and also "threatens the stability of our financial markets and abandons millions of Americans."
🚨The Trump Admin just laid off 1500 employees at the Consumer Financial Protection Bureau—leaving only 200 employees remaining.
— American Economic Liberties Project (@econliberties) April 17, 2025
This puts critical consumer protection at risk, threatens the stability of our financial markets, and abandons millions of Americans. pic.twitter.com/hpW2pdHG0E
Demand Progress, another advocacy nonprofit, said the move has effectively killed the agency's "ability to function."
Yesterday: Trump officials published a memo saying they want the CFPB to protect service members and veterans.
— Demand Progress (@demandprogress) April 17, 2025
Today: The Trump admin announced 1,500 layoffs at the CFPB out of 1,700 remaining staffers, effectively killing the agency's ability to function. pic.twitter.com/njvEjorYZW
The Consumer Federation of America (CFA) called the latest move a "sabotage," saying it was illegal to implement mass layoffs at the agency.
Trump has yet to address concerns around the legality of the layoffs.
