Mass Layoffs at CFPB Ignite Controversy

The U.S. Consumer Financial Protection Bureau plans to lay off 90% of its workforce following a federal court ruling favoring the Trump administration. Amid legal challenges, the CFPB's future remains uncertain, despite assurances of its continued existence. Created post-2008, the agency faces significant changes under Trump's presidency.

The U.S. Consumer Financial Protection Bureau (CFPB) announced it plans to lay off up to 90% of its workforce. This move comes shortly after a federal court ruling gave the Trump administration authority to adjust staffing levels, prompting challenges from unions and consumer advocates.

Approximately 1,500 staff members across key divisions, including enforcement and supervision, are set to receive termination notices. The White House has not commented on this development. The layoffs have sparked legal battles, as unions argue against what they view as the illegal dismantling of the agency.

Despite calls from President Trump and Elon Musk to eliminate the CFPB, administration officials insist it will continue in some capacity. Democratic Senator Elizabeth Warren criticized the move, highlighting the agency's role in providing $21 billion in financial relief to Americans. The legal tussle continues as courts debate the agency's fate.

(With inputs from agencies.)