Elon Musk’s Department of Government Efficiency orchestrated a 36-hour purge of thousands of federal employees from the Consumer Financial Protection Bureau (CFPB), a watchdog created in response to the 2008 financial crisis. The agency has been a prime target of Trump supporters and conservatives, who claim its consumer protection mandate is redundant with other regulatory agencies.
In a memo issued on Wednesday, the CFPB’s chief legal officer outlined supervision and enforcement priorities, focusing on fraud while deprioritizing areas such as loans, digital payments, and medical debt. The following day, acting director Russell Vought sent out a mass layoff notice to thousands of employees, despite an appeals court ruling that any layoffs required a “particularized assessment.”
However, staff testifying in court filings claim the CFPB’s chief operating officer dismissed concerns about the direction, prioritizing numbers over adherence to guidelines. A staffer described Gavin Kliger, who managed the reduction-in-force team, as “screaming” at employees deemed incompetent.
The CFPB has faced years of challenges from conservatives seeking to eliminate or dismantle the agency. Despite a preliminary court block on layoffs and an ongoing legal battle, the administration’s campaign continues. The agency’s decision to fire 90% of its 1,700 employees triggered a new legal showdown, with a follow-up hearing scheduled for April 28.
Source: https://fortune.com/article/consumer-financial-protection-bureau-doge-elon-musk-layoffs-rfi-court-filings-firings