CFPB Faces Mass Layoffs Amid Controversy

The U.S. Consumer Financial Protection Bureau announced plans to dismiss 90% of its workforce, following a federal court ruling that favors the Trump administration's push for downsizing. Legal challenges from employee unions argue the action violates court orders, jeopardizing the agency's consumer protection responsibilities.

The U.S. Consumer Financial Protection Bureau, tasked with guarding Americans against exploitative business practices, plans to dismiss nearly 90% of its staff. This move, revealed Thursday, follows a federal court ruling empowering the Trump administration to set staffing levels, igniting legal backlash from unions and consumer groups.

According to internal sources, formal layoff notices began circulating Thursday afternoon, confirming approximately 1,500 terminations. The dismissals have sparked legal action claiming the agency's actions defy a court mandate to maintain sufficient operational staff, with a union's emergency motion filed against the reductions.

Critics argue the staff cuts undermine the Bureau's legislative duties. The agency reported the dismissals would be effective within 60 days, restricting system access by Friday. The move aligns with calls from President Trump and Elon Musk for the CFPB's closure, although officials state it will continue in a revised form.

(With inputs from agencies.)