From Yahoo Finance: 2025-04-18 01:19:00

A federal judge halted the Consumer Financial Protection Bureau’s plan to lay off 1,500 employees, preventing the cutoff of their system access. The move was part of a restructuring effort announced by acting director Russ Vought. Attorneys representing the National Treasury Employees Union sought an emergency hearing to challenge the layoffs.

The preliminary injunction granted previously by Judge Amy Berman Jackson prohibited mass layoffs, with an appeals court ruling that individual assessments were necessary before issuing RIF notices. The NTEU argued that the sudden staff reduction would interfere with the agency’s statutory duties. The proposed cuts would reduce the CFPB’s headcount to around 200 employees.

The layoffs would affect various departments within the CFPB, including the consumer response team, research, monitoring, regulations, supervision policy, cybersecurity, and more. The planned restructuring would leave the Office of Consumer Response with only eight managers, significantly impacting the bureau’s ability to handle consumer complaints. Employees expressed concerns over the lack of consultation and the detrimental impact on critical functions.

Elizabeth Bond, a senior adviser at the CFPB, received her layoff notice while on maternity leave, highlighting the personal toll of the abrupt terminations. The planned layoffs raise questions about the agency’s ability to fulfill its statutory obligations and handle consumer complaints effectively. The NTEU’s legal challenge seeks to prevent the mass firings and ensure due process for affected employees. Former Consumer Financial Protection Bureau (CFPB) employees express devastation and concern over recent staff cuts and agency dismantling. Anonymous sources warn of potential layoffs, describing the situation as a looming threat. Consumer advocates, including Erin Witte of the Consumer Federation of America, criticize the cuts and fear a lack of accountability for corporate wrongdoing. Senator Elizabeth Warren condemns the agency’s gutting as an assault on consumers and democracy.



Read more at Yahoo Finance: Judge again halts CFPB’s 1,500 layoffs