CFPB Fires 1,500 Workers Amid Restructure

The Consumer Financial Protection Bureau (CFPB) underwent a mass firing, with approximately 1,400 to 1,500 of its 1,700 employees receiving termination notices, leaving the agency with a skeletal staff of about 200. The layoffs, authorized by acting director Russ Vought, were justified as a necessary restructuring to align with new agency priorities, despite concerns from employees, attorneys, and consumer groups that the move undermines the CFPB's ability to fulfill its statutory duties. The decision followed a court ruling allowing firings only after individual assessments that employees were unnecessary, a process critics argue was exploited to dismantle the agency. The layoffs affected all offices, including enforcement and supervision, and came without advance notice, raising questions about compliance with federal labor laws and the collective bargaining agreement. The agency's new focus deprioritizes areas such as medical debt, student loans, consumer data, and digital payments, sparking fears that markets the CFPB oversees may be at risk. The CFPB, established after the 2008 financial crisis to protect consumers from unfair financial practices, now faces major uncertainty about its future role and effectiveness.