Mass Layoffs Hit Consumer Financial Protection Bureau

The Trump administration sent layoff notices on Thursday to a large swath of employees at the Consumer Financial Protection Bureau, just days after a federal appeals court pared back an injunction that had prevented the agency’s leaders from carrying out plans to fire nearly all of the bureau’s workers.

The full scope of the cuts was not immediately clear, but by late afternoon, hundreds of workers across all of the agency’s major divisions had received reduction-in-force notices. Fired employees were told they would lose access to their email accounts and the agency’s work systems on Friday evening.

A legal filing Thursday evening by the consumer bureau’s staff union estimated that the terminations could hit as many as 1,500 of the bureau’s 1,700 employees. “Entire offices, including statutorily mandated ones, have or soon will be either eliminated or reduced to a single person,” the union said in its filing to the Federal District Court in Washington.

The notice of the layoffs appeared to immediately catch the attention of the district judge in the case, Amy Berman Jackson, who set an 11 a.m. hearing on Friday to determine whether the government had violated her injunction to halt the dismantling of the agency. She ordered the bureau to produce an official “with personal knowledge” of the scope of the layoffs and the decision to implement them for the hearing.

Representatives of the consumer bureau did not respond to a request for comment.

The bureau, which was created by Congress in 2011, monitors banks and other lenders. Since it was established, the watchdog agency has returned $21 billion to defrauded consumers through refunds and debt cancellation, according to government figures.

On Wednesday, Mark Paoletta, the agency’s chief legal officer, sent an all-staff memo laying out new priorities. The bureau will significantly reduce its enforcement and compliance examination work, and “deprioritize” oversight of student loans, medical debt, digital payments and peer-to-peer lending, he wrote.

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