CFPB Staff Purge Begins with Dozens of Employees Terminated

Consumer Financial Protection Bureau Sends Termination Notices to Dozens of Employees

Acting director of the Office of Management and Budget Russell Vought speaks with reporters during a press briefing at the White House in Washington on March 11, 2019.

The Consumer Financial Protection Bureau sent termination notices to several dozen employees late Tuesday, according to people with knowledge of the situation. The affected staff were mostly those with probationary status, said the people, who asked for anonymity to speak candidly after orders to stop all agency work, including speaking with reporters.

What is probationary status?

Being on probation means the employee is in a trial period, often lasting a year or two, after starting a new government position, and does not reflect performance, the people said.

Background on the situation

The move comes amid a broader effort under President Donald Trump to trim federal staff. The Office of Personnel Management asked federal agencies for lists of all recently hired workers because they are the easiest to terminate, NBC News has reported. That has stoked fears of layoffs at places as disparate as the Federal Bureau of Investigation and the Environmental Protection Agency.

CFPB staff on edge

CFPB staff have been on edge since late last week, when operatives of Elon Musk’s Department of Government Efficiency gained access to the agency. The CFPB headquarters have since been shuttered, while employees were told by acting CFPB director Russell Vought not to do any bureau work. Both Musk and Vought have called for the elimination of the CFPB.

Reactions from affected employees

"This is an unlawfully-executed mass firing," said Johanna Hickman, senior CFPB litigation counsel who said she received the agency’s dismissal notice. "It’s almost certainly the first salvo in the dismantling of this agency, and a significant percentage of the federal workforce."

Hickman, who said she started in her CFPB role in June of 2023, said the agency’s new leadership didn’t follow established federal protocol for dismissing probationary employees. "A lot of us are prepared to fight, and we are examining all our legal avenues," she said.

Conclusion

The terminations at the CFPB have caused uncertainty and confusion among employees, with some receiving form letters that did not include their specific names and titles. The agency’s enforcement division has been particularly affected, as it had a push to boost hiring of enforcement lawyers under former director Rohit Chopra.

FAQs

Q: What does probationary status mean in the context of government employment?
A: Being on probation means the employee is in a trial period, often lasting a year or two, after starting a new government position, and does not reflect performance.

Q: Why were the CFPB employees sent termination notices?
A: The terminations were reportedly due to a broader effort under President Trump to trim federal staff, with the Office of Personnel Management asking for lists of all recently hired workers to be terminated.

Q: What is the reaction from affected employees?
A: Some employees, like Johanna Hickman, are prepared to fight the terminations and are examining all legal avenues to challenge the dismissals.