The Trump administration is laying off most of the staff at the Consumer Financial Protection Bureau, a move that has already prompted action in court.
About 1,500 out of 1,700 employees are being let go, according to the National Treasury Employees Union, which represents the agency’s staffers. Workers started receiving the reduction in force, or RIF, notices on Thursday.
The CFPB was an early target of the Trump administration’s downsizing efforts, but its undoing was largely blocked in federal court. However, a federal appeals court last week said the administration could further shrink the agency but not shutter it completely. The order made clear that the administration cannot trim the bureau down so much that it cannot carry out its statutory functions.
Already, the unions and other groups that initially sued have asked a judge to hold an emergency hearing on the sweeping layoffs, alleging that the mass terminations violated the court order. They argued that it was “unfathomable that cutting the Bureau’s staff by 90 percent in just 24 hours” wouldn’t interfere with its obligations to carry out the mandates set by Congress.
The NTEU said in a statement the appeals court required the agency to “make a ‘particularized assessment’ with respect to employees if it was going to carry out a reduction in force.” The union questioned whether that could have been done in less than four business days.
A RIF notice viewed by CNN said that the employee would retain access to the computer systems and work email until 6 p.m. Friday and then be put on administrative leave until mid-June.
“The RIF action is necessary to restructure the Bureau’s operations to better reflect the agency’s priorities and mission,” the notice read.