The Trump administration’s controversial push to execute mass CFPB layoffs just hit a major roadblock.
On Friday, U.S. District Judge Amy Berman Jackson issued a temporary injunction halting the dismissal of approximately 1,400 employees from the Consumer Financial Protection Bureau, a move that would have gutted the agency’s workforce down to just 200.
The proposed CFPB layoffs have drawn intense legal and public scrutiny, with opponents arguing the move violates previous judicial directives and threatens to dismantle one of the country’s core consumer watchdogs.
Originally created in the wake of the 2008 financial crisis, the CFPB has long served as a regulatory buffer between consumers and financial misconduct. Critics say the layoffs are not just a reduction in headcount, they’re a political maneuver to weaken federal oversight.
Judge Jackson’s ruling temporarily halts the layoffs, pending further legal review. In her order, she pointed to potential violations of federal employment protections and emphasized that the administration’s actions may conflict with earlier rulings safeguarding the bureau’s operational independence.
Consumer advocates have since rallied around the decision, warning that the layoffs would severely undermine the bureau’s ability to monitor lending practices, enforce fair credit reporting, and protect vulnerable populations from fraud.
“This is a dangerous precedent,” said one advocacy group leader. “The CFPB layoffs aren’t about efficiency, they’re about gutting accountability.”
Supporters of the cuts, however, maintain that the CFPB has grown into an overly bureaucratic institution and argue that reducing its workforce is a step toward trimming government overreach. They claim the layoffs are necessary to “streamline” operations and reduce federal spending.
President Trump just fired almost the entire staff of the CFPB, who protect you from getting scammed by Wall Street.
This is another assault on consumers and our democracy by Trump’s lawless Administration.
We will fight back with everything we’ve got.
— Elizabeth Warren (@SenWarren) April 17, 2025
Still, the backlash has been swift. Several legal organizations have filed amicus briefs in support of Judge Jackson’s decision, and federal unions are preparing to challenge the cuts on grounds of due process violations and retaliatory dismissal.
As the legal battle continues, one thing is clear: the fight over the CFPB layoffs has become a high-stakes test of how far political administrations can go in reshaping federal agencies, and how far the courts will let them.
Stay tuned for further updates as the injunction heads into hearings next week.
