The Consumer Financial Protection Bureau (CFPB) is sending out mass layoff notices that appear to be in defiance of a court order blocking further layoffs following DOGE-induced cuts.
“I regret to inform you that you are affected by a reduction in force (RIF) action,” says a notice reviewed by The Verge that was sent by CFPB Acting Director Russell Vought to an agency employee. “This RIF action is necessary to restructure the Bureau’s operation to better reflect the agency’s priorities and mission.” Access to CFPB systems will be cut off after Friday, and employees will be placed on administrative leave until their official end date, the notice says.
Fox Business reports that around 1,500 workers will receive RIF notices across core functions, based on an unnamed source. On Thursday night, CFPB Chief Legal Officer Mark Paoletta sent a notice of the agency’s supervision and enforcement priorities that said the CFPB would “shift resources away from enforcement and supervision that can be done by the States” and rescinded previous enforcement and supervision priority documents, The Wall Street Journal reported.
In March, a federal judge ordered the Trump administration not to “terminate any CFPB employee, except for cause related to the individual employee’s performance or conduct; and defendants shall not issue any notice of reduction-in-force to any CFPB employee.” An appeals court order this month partially stayed that portion of the injunction, but only to the extent it would keep the CFPB from issuing a RIF that the agency determined “after a particularized assessment, to be unnecessary to the performance of defendants’ statutory duties.”
