US consumer watchdog is laying off employees beyond its probationary staff, sources reveal. The Consumer Financial Protection Bureau (CFPB) told to stop work in a fresh round of dismissals, coinciding with an employee union and NAACP suing the administration.
The layoffs target “term” employees, who are entitled to job protections under their contracts. This move comes as the CFPB faces increased scrutiny over its handling of consumer complaints and financial regulation policies.
As part of the firings, the administration is also targeting probationary staff, sparking concerns about the agency’s commitment to protecting consumers. The employee union and NAACP have filed a lawsuit against the administration, citing unfair labor practices.
The CFPB’s actions are seen as a significant blow to its ability to regulate the financial sector and enforce consumer protection laws. The agency’s role in overseeing banks and other financial institutions is crucial to maintaining public trust in the financial system.
With this latest round of layoffs, the CFPB is facing an uncertain future, leaving many wondering about the impact on consumer protection and financial regulation in the US.
Source: https://www.reuters.com/world/us/us-consumer-watchdog-broadens-layoffs-beyond-probationary-staff-sources-say-2025-02-14