The Consumer Financial Protection Bureau (CFPB) is facing a major restructuring under the leadership appointed by President Donald Trump. According to employees, nearly 1,700 staff members could lose their jobs as part of a plan to scale down the agency to its legal minimum.
Alex Doe, an employee speaking under a pseudonym, revealed that layoffs would happen in three stages. The first phase would cut temporary and probationary employees, followed by a second round affecting approximately 1,200 workers. In the final stage, within 60 to 90 days, the agency would retain only five employees, as required by law.
CFPB: Operations Halted Amid Workforce Reduction
The CFPB, established after the 2008 financial crisis to protect consumers from financial abuse, has already seen significant disruptions. Employees reported that after representatives from Elon Musk’s Department of Government Efficiency (DOGE) arrived, the Washington headquarters shut down, and most operations were suspended.
A lawsuit filed by the agency’s labor union has temporarily halted further layoffs. However, internal reports suggest contradictions between official statements and actual developments. Some employees claim CFPB leadership has reassured them about maintaining legal consumer protection responsibilities, yet ongoing actions indicate an intent to dismantle the agency.
Legal Battle Over the CFPB’s Future
Interim Director Russell Vought defended the restructuring, stating that the goal is to create a “more agile and efficient office.” However, internal testimonies indicate a different reality. In recent meetings, executives allegedly discussed turning the CFPB into a small Treasury, White House, or Federal Reserve department with only five employees and a single phone line.
With the next court hearing scheduled soon, the fate of the CFPB remains uncertain. Employees continue to push back against the downsizing, arguing that the agency’s mission to protect consumers is at risk.
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