The Trump administration has started laying off the majority of employees at the Consumer Financial Protection Bureau (CFPB), with more than 1,500 staffers expected to lose their jobs in the coming weeks.
This move is part of Trump’s ongoing effort to shrink the size of the federal government. The CFPB, established after the 2008 financial crisis to protect consumers from predatory financial practices, has long been a target of criticism from Trump allies, big banks, and tech leaders like Elon Musk. They argue the agency oversteps with aggressive regulation of lenders, credit companies, and fintech firms.
Although a federal judge initially blocked the administration’s plan to shut down the agency and conduct mass layoffs, a recent appeals court decision reversed that ruling, clearing the way for job cuts to proceed.
Employees impacted by the layoffs will remain in the system until Friday evening but are expected to be officially off the payroll by mid-June. The agency also announced it will shift its focus away from enforcement, leaving more oversight to state regulators.
The cuts are seen as the first major step in what appears to be a full-scale rollback of the CFPB’s power and possibly the beginning of the end for the agency altogether.
Critics, including Senator Elizabeth Warren, who helped create the bureau, have condemned the move as harmful to consumers, warning that without the CFPB, everyday Americans will be left with fewer protections against financial abuse.
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