Senator Elizabeth Warren (D-Mass.) addresses a rally outside the Consumer Financial Protection Bureau in Washington, D.C., on February 10, 2025. According to the agency’s union, several CFPB workers were terminated earlier that week.

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On Tuesday evening, numerous probationary employees at the Consumer Financial Protection Bureau (CFPB) were let go, as stated by the union representing CFPB workers.

The union for CFPB has revealed that around 73 employees in their probationary phase were let go, as stated by Jasmine Hardy, the executive vice president for NTEU Chapter 335. Hardy also indicated that non-union workers may have been affected as well.

“We believe this may have been an unlawful termination, and we are ready to take necessary action,” Hardy conveyed in her statement to NPR. “Our main goal is to return to our mission of protecting U.S. consumers and ensuring fair, transparent, and competitive consumer financial markets.”

The duration of the probationary period for federal roles typically spans one to two years, making termination easier within this timeframe.

The agency has not replied to NPR’s request for comment.

These layoffs follow President Trump’s nomination of Jonathan McKernan as the new director of the CFPB, the agency responsible for consumer finance oversight, according to reports from Punchbowl News and The New York Times. McKernan is set to replace Russell Vought, the acting director appointed just days before.

The termination notifications were distributed via email, often lacking personalization, which indicates a possible mail merge error, according to two employees affected by these layoffs.

The notices stated: “MEMORANDUM FOR [EmployeeFirstName] [EmployeeLastName], [Job Title], [Division].” These were sent from Adam Martinez, acting Chief Human Capital Officer for the agency.

‘A bit insulting’

Taylor Sonne, a compliance examiner who joined the CFPB in March, received his termination notice on Tuesday. With less than a year at the agency, he was still on probation.

The letter Sonne received stated he was being let go as “the Agency finds that you are not fit for continued employment because your abilities, knowledge, and skills do not align with the Agency’s current requirements.”

Sonne feels this wording implies he was dismissed for misconduct despite not being consulted by his supervisor. “These terminations are part of a reduction in force and should be acknowledged as such,” he remarked. He added it’s particularly frustrating given his recent promotion and positive performance review.

Johanna Hickman, who worked as a Senior Litigation Counsel in the CFPB’s enforcement division since June 2023, also received a termination notice that echoed the same language as Sonne’s. The letters sent out to other employees seemed identical.

These termination notifications suggest that if employees “believe this decision is politically motivated, they can file an appeal.” Both Sonne and Hickman are considering their options moving forward. Hickman stated, “We firmly believe this was unlawfully executed and does not adhere to regulations, so we are exploring our possibilities. We will stand our ground.”

President Trump is joined by Elon Musk and his son in the Oval Office on February 11, 2025. The administration’s DOGE team is aimed at downsizing the federal workforce.

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Federal Employees Prepare for Further Layoffs

The job cuts at the CFPB occur amid the Trump administration’s efforts to significantly downsize the federal workforce.

This strategy mirrors ongoing changes within USAID, where staff were ordered to stop work, headquarters were closed, and most personnel were placed on administrative leave. A federal judge recently intervened to halt this leave order.

Leading these federal workforce reductions is the Department of Government Efficiency under billionaire Elon Musk, which has informed over 2 million federal employees that they would remain on full pay until September if they choose to resign.

Additional probationary employees might be targeted across the federal landscape. On the first day of Trump’s new term, a memorandum was issued from the Office of Management and Budget instructing agencies to compile a list of all probationary workers.

Frequent Leadership Changes

The CFPB has experienced turmoil recently, with staff being instructed by Vought to cease all work and the agency’s headquarters being closed for an entire week.

The agency has shifted leadership twice in just two weeks after the dismissal of Rohit Chopra as its head by Trump. Following Chopra’s dismissal, Treasury Secretary Scott Bessent temporarily took over before being replaced by Vought shortly afterward.

After the termination of Rohit Chopra, the CFPB has experienced two leadership changes within two weeks.

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Under McKernan’s leadership, the CFPB might undergo yet another change this year, following his recent role at the FDIC. His name has surfaced as a candidate for the CFPB position through various media outlets, including Punchbowl News and The New York Times. McKernan previously served as counsel for Senator Pat Toomey in the Senate Banking Committee and worked at the Federal Housing Finance Agency and the Treasury Department.

Banking associations have expressed support for McKernan’s selection, hoping for a reevaluation of recent CFPB actions that they claim could harm consumers. The Consumer Bankers Association stated they look forward to collaborating with him to ensure the agency operates within its legal framework.

The CFPB has been met with skepticism from many Republicans and executives in the financial sector, who argue it imposes excessive regulations on financial institutions and services. Established after the 2008 financial crisis to avert similar future events, the bureau is a part of the Federal System and funded by the Federal Reserve.

Reflecting on his time at the FDIC, McKernan previously mentioned a commitment to reversing regulations enacted during the Biden administration, expressing confidence that the FDIC would successfully pursue its mission under new leadership.