According to testimony from the Consumer Financial Protection Bureau (CFPB) employees, the leadership appointed during Trump’s administration has outlined plans to dismiss nearly all of the agency’s 1,700 employees as part of a strategy to phase out the bureau entirely.
Late Thursday saw the release of numerous statements by federal employees who described internal discussions held earlier this month. These meetings included conversations with senior leaders at the CFPB and associates of Elon Musk’s Department of Government Efficiency (DOGE).
“My team has been instructed to facilitate the rapid termination of the vast majority of CFPB staff,” reported one employee, using the pseudonym Alex Doe to maintain anonymity due to fear of reprisal.
Doe elaborated on this plan, which involves a multi-phase reduction of the workforce, starting with laying off probationary and term workers. Following that, approximately 1,200 employees would be let go, leaving only a small number to maintain operations.
“The final phase would involve completely narrowing down the Bureau within 60-90 days by letting go of most of the remaining staff,” he added.
This testimony emerges at a pivotal time for the CFPB, a body founded to protect consumers following the 2008 financial crisis caused by reckless lending practices. Since DOGE representatives joined the CFPB recently, activities have included closing the main office in Washington, initiating the first set of layoffs, and instructing remaining staff to halt almost all agency functions.
The testimonies were documented in relation to a case brought forward by the CFPB’s union, which paused acting Director Russell Vought’s decision to dismantle the bureau. After approximately 200 probationary and term employees were terminated, the actions were temporarily halted pending a March 3 hearing.
Documents suggest a notable discrepancy between Director Vought’s public statements and what is occurring internally at the CFPB.
On Monday, Vought filed a motion countering claims that there were plans to dismantle the CFPB. “To run a ‘more streamlined and efficient bureau,’ a CFPB must exist,” he asserted.
However, the Trump administration aims to pare down the CFPB to its legal minimum, reportedly planning to retain just five employees, potentially as a separate office or integrated into another regulatory body.
Meetings held between February 18 and 25 communicated to staff by senior executives that the agency would be reduced to only these five legally required positions, as testified by another employee, who used the pseudonym Drew Doe.
“A senior executive described the future CFPB as ‘a room at Treasury, White House, or Federal Reserve, staffed by five men and a phone,'” Drew Doe recounted.
In a separate meeting on February 13, the bureau’s Chief Operating Officer, Adam Martinez, allegedly indicated that the agency was in “shutdown mode.”
Republicans and financial groups have long criticized the bureau, labeling it as a rogue entity that exceeds its legal authority when disciplining companies. More recently, Musk declared his support, tweeting “RIP CFPB” on his X platform alongside the commencement of DOGE’s efforts.
During these meetings, there were instances where CFPB senior staff seemed to defer key responsibilities to DOGE’s team. For example, DOGE representative Jordan Wick indicated their department wanted significant layoffs by February 14.
“The plan was to proceed with the mass layoffs by February 14, except for the court’s injunction preventing it,” said Alex Doe.
DOGE personnel, despite having full access to CFPB systems and data since February 7, have yet to complete the necessary cybersecurity and privacy training, according to employee testimonies.
If required by the court for verification, CFPB employees have stated their willingness to provide their identities confidentially.
While both Musk and Vought have expressed intentions to dismantle the agency, only Congress can legally dissolve the CFPB, established through the 2010 Dodd-Frank Act.
CFPB employees question the viability of operating with just a handful of staff, given the agency’s responsibilities such as handling millions of consumer complaints and maintaining advocacy offices for veterans and senior citizens.
On Thursday, Jonathan McKernan, President Trump’s nominee to succeed Vought, assured lawmakers, including Senator Elizabeth Warren, of his commitment to fully uphold and enforce laws pertaining to the CFPB’s mission. He mentioned if confirmed by the Senate, he would work to “right-size,” refine, and hold the CFPB accountable.
Senator Jack Reed of Rhode Island pointed out the precarious nature of McKernan’s position during his remarks. “You lack strong support from the President or the OMB, and I worry you’re setting sail on the Titanic from Liverpool,” Reed commented, wishing McKernan “Good luck.”
