With mass layoffs expected, judge to weigh blocking the dismantling of consumer watchdog CFPB

(WASHINGTON) — After the Consumer Finance Protection Bureau (CFPB) fired its probationary workers as part of the Trump administration’s government-wide layoffs Thursday, the agency moved on to fire short-term employees Thursday night with most of the remaining staff expected to be fired Friday, according to a lawsuit.

A group of federal unions that is suing the Trump administration over its dismantling of the agency alleged in a court filing Thursday that the newly installed acting director, Russell Vought, plans to fire over 95% of the agency’s workforce as soon as Friday.

The plaintiffs who brought the lawsuit are asking a federal judge to impose a temporary order to block the dismantling the CFPB, which they argue could have sweeping consequences for American consumers.

The firings, part of President Donald Trump’s campaign pledge to slash the federal government, would gut the 1,700-employee consumer watchdog agency, according to three CFPB employees who spoke to ABC News on the condition that they not to be identified out of fear of retribution.

“All term employees were fired tonight, and it looks like the rest of us will be fired tomorrow but for cause rather than via a [reduction in force] which means no severance I think,” one agency lawyer wrote in a message to ABC News.

“3 of my 4 teammates were canned,” another employee wrote. “Just me and my supervisor left, the only permanent employees.”

Employees were told not to work or go into the agency’s Washington, D.C., headquarters this week, and several employees said their credentials did not allow access into satellite offices in San Francisco, Chicago, New York and Atlanta on Thursday, two of the employees said.

The employees said the firings will leave all Americans more vulnerable to fraud.

“I’m worried about everybody. What about the people who use our complaints to get their loans straightened out or their bank accounts unfrozen? They’ve already tried calling the company and gotten nowhere,” an employee wrote. “Who will help them now? Will the companies get bold and screw over their customers without our robust oversight?”

“It’s going to be a nightmare,” the employee said.

“I’m concerned for every consumer out there,” another employee told ABC News. “There’s a lot of fintech companies and I don’t know what’s going to happen if we don’t have purview over that.”

The employee said she was also concerned about X CEO Elon Musk, the head of the Department of Government Efficiency, having access to the CFPB’s massive database, which contains information about companies that Musk’s planned “X Money” online payment service would compete with. The agency would also be responsible for regulating the X Money platform.

The employee also said she was alarmed at the way CFPB employees were being characterized by the Trump administration.

“A lot of people are actively giving back and serving” the community, she said of her fellow CFPB employees. “Some donate from our paychecks — donations for nonprofits, volunteering, donating, giving back to our community, fostering dogs, they’re involved in a lot of causes. I work with remarkable people who never stop serving.”

“Me personally, this was my dream job in college and I can’t even believe i got in, it was so competitive,” wrote the employee, who said she is in her fourth year at the agency after having worked in the private sector, so her pension will not vest. “It’s the dream job, what’s next? I’m too young to retire, I believe in the work we did, everyone I work with felt the same.”

Copyright © 2025, ABC Audio. All rights reserved.