CFPB Leaders and Elon Musk DOGE Planned to Fire Nearly All Staff

Elon Musk’s Department of Government Efficiency Plans to Fire Almost All CFPB Employees, According to Testimony

The Consumer Financial Protection Bureau’s Trump-appointed leadership plans to fire nearly all its 1,700 employees while "winding down" the agency, according to testimony from employees.

In a trove of statements released late Thursday, federal employees said that the mass layoff was discussed in meetings they attended this month with senior CFPB leaders and members of Elon Musk’s so-called Department of Government Efficiency (DOGE).

"My team was directed to assist with terminating the vast majority of CFPB employees as quickly as possible," said an employee identified as Alex Doe, a pseudonym used out of fear of retaliation.

Doe said the plan from CFPB leaders and DOGE was to cut the bureau’s workforce in three phases. It would first eliminate probationary and term employees, then carry out a wave of about 1,200 layoffs, leaving a skeleton crew of a few hundred workers. Finally, the Bureau would "reduce altogether" within 60-90 days by terminating most of its remaining staff.

The Workers’ Testimony

The workers’ testimony comes at a crucial time for the CFPB, the agency created to protect consumers after the 2008 financial crisis caused by irresponsible lending. Since DOGE operatives first arrived at the CFPB this month, the bureau has shuttered its Washington headquarters, initiated the first round of layoffs, and told those who remain to stop nearly all work.

The department has also reversed course on several cases where it accused financial firms, including Capital One, of ripping off customers, dismissing at least four cases Thursday involving billions of dollars in alleged consumer harm.

DOGE’s Role

The bureau has long been a target of Republicans and financial institutions, who have called it a rogue agency that exceeded its legal authority in punishing companies. More recently, Musk has taken up the cause; he posted on his X platform, "RIP CFPB," earlier this month just as his DOGE operatives began their work.

In several instances in the testimony, senior CFPB staff appeared to defer to DOGE employees for critical matters.

Legal Requirements

While Musk and Vought have openly advocated for the termination of the CFPB, only Congress can truly shutter the agency, which was created after lawmakers passed the 2010 Dodd-Frank Act.

Vought’s moves appear to allow him to claim the CFPB still exists, while sidelining its role by drastically curtailing its ability to supervise companies and respond to complaints.

CFPB employees question whether a handful of employees could credibly fulfill the dozens of statutory requirements of the agency, which include responding to millions of consumer complaints filed via web and phone lines, as well as maintaining advocacy offices for military veterans and senior citizens.

Conclusion

The fate of the Consumer Financial Protection Bureau hangs in the balance as the Trump administration’s plans to fire nearly all its employees come to fruition. The agency’s role in protecting consumers remains uncertain as the Department of Government Efficiency, led by Elon Musk, takes over. The outcome will have far-reaching implications for the financial sector and the millions of Americans who rely on the CFPB for protection.

Frequently Asked Questions

Q: What is the Consumer Financial Protection Bureau?
A: The Consumer Financial Protection Bureau is a federal agency created in 2010 to protect consumers from unfair and deceptive financial practices.

Q: What is the Department of Government Efficiency?
A: The Department of Government Efficiency is a group led by Elon Musk that aims to streamline government operations and reduce bureaucracy.

Q: Why is the CFPB being targeted?
A: The CFPB has been a target of Republicans and financial institutions, who have called it a rogue agency that exceeded its legal authority in punishing companies.