The Office of the Comptroller of the Currency (OCC) has laid off 76 probationary employees, joining other federal banking regulators in cutting their workforces under an order from President Donald Trump. The terminations are part of a larger trend among federal agencies, with the Federal Deposit Insurance Corp. (FDIC) and Consumer Financial Protection Bureau (CFPB) also conducting mass layoffs.
The OCC’s midsize and community bank examiners were hit hardest, with many employees facing administrative leave until March 8, when their firings will officially take effect. The terminations align with the Office of Personnel Management’s guidance on probationary periods and administrative leave.
The National Treasury Employees Union (NTEU), which represents OCC employees, sent a warning bulletin to its members on Thursday, stating that “many probationary employees” would be fired for reasons unrelated to their performance. The union has vowed to take action against the agency, including pursuing administrative and legal remedies.
The layoffs come as part of a broader effort by the Trump administration to reduce the federal workforce. A recent court ruling blocked the NTEU’s attempts to challenge the firings of probationary employees at other agencies, but the union plans to appeal the decision. The CFPB has also fired around 140 employees, including enforcement attorneys and fellows reviewing Big Tech’s role in consumer finance.
The OCC is funded through assessments charged to banks it oversees, rather than congressional appropriations. While the administration claims the layoffs are a cost-saving measure, many experts see them as part of a broader effort to reduce the size and scope of federal agencies.
Source: https://news.bloomberglaw.com/banking-law/occ-starts-firing-probationary-staff-joining-other-regulators