What's the long-term cost of federal layoffs?

Summary

Summary of "What's the Long-Term Cost of Federal Layoffs?"
The Indicator from Planet Money
Release Date: February 25, 2025
Host: Darian Woods
Produced by NPR

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Introduction

In the episode titled "What's the long-term cost of federal layoffs?" from The Indicator from Planet Money, host Darian Woods delves into the recent wave of federal layoffs, focusing on the personal and systemic impacts of these workforce reductions. The episode explores not only the immediate effects on individuals but also the broader implications for government operations and future recruitment of talent.

The Incident: Confusion and Chaos in Federal Layoffs

The episode opens with a chaotic scenario involving the Office of Personnel Management (OPM) and a confusing directive sent to federal employees. An email was circulated asking federal workers to report their activities over the past week. Elon Musk's subsequent tweet that ignoring the email would be considered a resignation added to the confusion. The OPM later clarified that responding was optional, highlighting the disarray surrounding the layoffs.

Notable Quote:

"The Office of Personnel Management and Elon Musk have been confusing federal workers with an email over the weekend."
— Darian Woods [00:11]

Personal Story: Elizabeth Anaskevich's Journey

Central to the episode is the story of Elizabeth Anaskevich, an attorney who faced unexpected termination from her role at the Consumer Financial Protection Bureau (CFPB). Elizabeth's career trajectory is remarkable, beginning with a traumatic incident at age 14 where she was falsely accused of shoplifting—a moment that inspired her to pursue law.

Notable Quote:

"It was just... shocking, even though it was somewhat expected."
— Elizabeth Anaskevich [00:53]

Elizabeth's dedication led her to the CFPB, where she thrived in her role, emphasizing the importance of contributing to a greater purpose over monetary gains.

Notable Quote:

"I am willing to make less money than I could to do good work, because what ultimately motivates me is not making money."
— Elizabeth Anaskevich [04:46]

The Layoff: Sudden Termination and Immediate Reactions

In early February, Elizabeth received a termination notice late at night, citing her as "not fit for continued employment." This abrupt removal was part of a larger pattern affecting numerous probationary and contract employees at the CFPB. The termination came despite positive performance reviews and active contributions, leaving Elizabeth and her colleagues bewildered and disheartened.

Notable Quote:

"I just cried and engaged in some gallows humor to get back on my feet. And then I pretty quickly went absolutely not. I'm fighting back."
— Elizabeth Anaskevich [08:59]

Organizational Impact: Eroding Trust and Future Recruitment Challenges

Elizabeth articulates a significant concern: such abrupt and seemingly arbitrary layoffs may deter talented individuals from seeking government positions in the future. The perception of job insecurity, especially in roles traditionally seen as stable, could undermine the government's ability to attract and retain skilled professionals.

Notable Quote:

"I mean, this is worse than, I think I've heard of any public company, you know, tossing someone out or any company. I think that's a really scary story for future generations to hear."
— Elizabeth Anaskevich [10:11]

Systemic Issues: Government Agencies and Structural Challenges

The episode also touches upon broader systemic issues within government agencies, such as the reduced enforcement capabilities of the CFPB under different administrations and the precarious status of probationary employees. These factors contribute to an environment of instability and uncertainty, further exacerbating the challenges faced by dedicated public servants like Elizabeth.

Resilience and Moving Forward

Despite the setback, Elizabeth remains optimistic about her future. Her termination has opened doors to new opportunities, with numerous job offers already flooding her inbox. More importantly, she is channeling her experience into advocacy and legal action to hold the CFPB accountable, striving to ensure that such abrupt layoffs do not become commonplace.

Notable Quote:

"It seems like there is sort of this rage that resides in me and I do what I can to make the best of a bad situation."
— Elizabeth Anaskevich [09:47]

Conclusion

The episode concludes by highlighting the delicate balance between governmental stability and workforce flexibility. Elizabeth's story serves as a poignant reminder of the human cost behind bureaucratic decisions and the long-term implications for public trust and institutional efficacy. As federal layoffs continue, the need for transparent, fair, and thoughtful human resource practices becomes increasingly paramount to maintain the integrity and functionality of government operations.

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Credits:

• Produced by: Angel Carreras
• Engineering by: Kwesi Lee
• Fact-Checked by: Sarah Juarez
• Edited by: Cake and Cannon
• Production: NPR

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For more insights into work, business, and the economy, listen to The Indicator from Planet Money weekday afternoons.

Transcript

[NPR Announcer]

Npr.

[Darian Woods]

This is the indicator from Planet Money. I'm Darian Woods. The Office of Personnel Management and Elon Musk have been confusing federal workers with an email over the weekend. It asks them what they'd done over the last week. After Musk tweeted that failure to respond will be taken as a resignation, the Office of Personnel Management reportedly said on Monday that it was optional after all. And behind these big headlines of resignation offers and layoffs, there are countless unique stories like from Elizabeth Anaskevich. Elizabeth was working for the Consumer Financial Protection Bureau until she got a memo at 8:30 at night in early February.

[Elizabeth Anaskevich]

It was just, it was, it was shocking, even though it was somewhat expected.

[Darian Woods]

Today on the show, the personal story of how an energetic lawyer got knocked off from her dream career and what she thinks that might mean for whether the government can attract talented people in the future.

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[Darian Woods]

Elizabeth Anaskiewicz's career kind of began when she was just 14 years old. She'd been called into her school's front office.

[Elizabeth Anaskevich]

There were police officers in there who said, you know, we have a warrant for your arrest for shoplifting from a beauty store that I had never been to. I'm thinking, is this like a scared Straight joke Are they trying to tell me, like, stay on the right path and it can go wrong, you know, if you don't. I was so confused by that. But it quickly became obvious. It was very real when I was taken out of school in handcuffs to the police department and booked and was told I would have to stay overnight.

[Darian Woods]

Elizabeth's father managed to get her out of jail that night, and her parents paid for a lawyer. The lawyer gave Elizabeth the option of writing a letter of apology.

[Elizabeth Anaskevich]

And at that moment, I think, oh, I bet a lot of people sign a letter of apology when they didn't do it. I need to go to law school.

[Darian Woods]

The charges were dropped, and Elizabeth ended up suing the police department, reaching a settlement a few years later. And Elizabeth ends up following her dream. She becomes a lawyer. She focuses on securities law. And then about a year ago, she gets a tip. A former colleague said she'd be great for this job, going at the Consumer Financial Protection Bureau, the cfpb.

[Elizabeth Anaskevich]

The CFPB kind of married everything for me. I get to look at financial markets, I get to help regulate them. I get to stop predatory behavior and really work on behalf of everyday consumers.

[Darian Woods]

So in the legal profession, you kind of have a few choices with radically different paying conditions. So, for example, you could go down the corporate law route and get paid a lot of money to defend companies accused of breaking the law. Or another pathway is that you could work for nonprofits or the government. The opportunities for pay growth in those two areas might be less. But Elizabeth says things like contributing to a wider purpose that she cared about really mattered to her.

[Elizabeth Anaskevich]

I am willing to make less money than I could to do good work, because what ultimately motivates me is not making money.

[Darian Woods]

And another benefit Elizabeth thought about once she landed the position is that this kind of government work usually has more job security.

[Elizabeth Anaskevich]

I'm pushing 40. I am a single person. I own a home. And I felt like when I started this job, I really felt I could be here for decades.

[Darian Woods]

In the middle of last year, Elizabeth plunges straight into the work. She learns all about the way the Consumer Financial Protection Bureau operates its complaint database that has 10 million complaints from everyday consumers. The fact that it's returned $21 billion to them over 13 years. And in January, she files a big lawsuit against a big credit report company.

[Elizabeth Anaskevich]

So we. We. I'm not there anymore, the cfpb, but I was part of the team that did this, filed a lawsuit against Experian.

[Darian Woods]

What the lawsuit alleges relates to a common scenario when people check their credit score, they might see that their score unexpectedly falls. The credit report says that, for example, a local gym claims you have not paid the monthly subscription fee, but the consumer has. There's been an error. So this Jim Goer asks Experian to investigate. And this lawsuit alleges that Experian wasn't really doing much to investigate a lot of these complaints.

[Elizabeth Anaskevich]

That's where the CFPB can play a really important role and I was really excited and proud of that case.

[Darian Woods]

A post on Experian's website says the lawsuit is completely without merit. We reached out repeatedly to Experian to respond to the lawsuit that they didn't investigate users credit report errors through email, phone and with a couriered letter. We didn't receive a reply. Worth noting that many companies on the receiving end of these kinds of actions criticise the CFPB for the discretion it has in enforcing regulations. Maybe because of these kinds of criticisms. The agency's work has been on ice since President Trump came into office.

[Elizabeth Anaskevich]

I had received a stop work order, as had everyone, and we were told the only thing we could do in court is file a notice to basically ask the judge to pause the case.

[Darian Woods]

The Trump administration also asked agencies for a list of every probationary employee. Now, it's important to note that a probationary employee hasn't done anything wrong. It just means they've had their position for less than a year or two and have less legal protection. That included Elizabeth. Her supervisor wrote a memo in support of Elizabeth, trying to keep her.

[Elizabeth Anaskevich]

I had a really good performance review that sort of lauded me for stepping right in and getting to work and finding creative solutions.

[Darian Woods]

So there was a sliver of hope, but only a sliver.

[Elizabeth Anaskevich]

The morale was not great across the bureau. I mean, we were all really scared for what was to come. It's like we're doing the work, but there's just this kind of cloud over us of like, does this matter? Is this gonna go anywhere? Are we just gonna be shut down? And it's like, I think we all had to tap into like a little bit of cognitive dissonance between the reality of what's happening outside of the bureau and what we can try to accomplish while we're inside of it.

[Darian Woods]

Then on a Tuesday night in early February, her work devices sound their alerts.

[Elizabeth Anaskevich]

My work phone and computer sort of make a doo doo type of sound and says, oh, you've been kicked out, you need to log back in. So I'm thinking, oh, no, something bad has happened.

[Darian Woods]

When Elizabeth logs back in she sees a notice.

[Elizabeth Anaskevich]

So it says, this is to provide notification that I am removing you from your position of attorney, advisor and federal Service Agency. Unfortunately, the agency finds that you are not fit for continued employment because your ability, knowledge and skills do not fit the agency's current needs.

[Darian Woods]

Elizabeth is on a private group chat with about 80 probationary and contract employees at the CFPB. Within 15 to 30 minutes, everyone on that chat has received the same letter.

[Elizabeth Anaskevich]

It was just, I mean, it's like we knew we were on a list. We knew this could happen. I didn't think I would get a letter after hours terminating me. And I just cried and engaged in some gallows humor to get back on my feet. And then I pretty quickly went to absolutely not. I'm fighting back. What can I do to get the word out? We were immediately organizing US probationary employees on our channel chat, working on what lawsuits would be filed and that were subsequently filed. We protested the next day.

[Darian Woods]

I'm seeing some parallels between the 14 year old falsely accused of shoplifting here.

[Elizabeth Anaskevich]

Yeah, it seems like there is sort of this rage that resides in me and I do what I can to make the best of a bad situation.

[Darian Woods]

Looking more broadly, Elizabeth sees a real risk for the country. She thinks that by pulling the rug under high performing employees who thought their jobs were secure, the federal government might find it harder to hire in the future.

[Elizabeth Anaskevich]

I mean, this is worse than, I think I've heard of any public company, you know, tossing someone out or any company. I think that's a really scary story for future generations to hear. And, and it's, it's just really scary.

[Darian Woods]

Elizabeth herself will be fine. She says her phone is blowing up with potential job offers. She is highly employable after all. But as of this week, she has been too busy talking with people about what happened. This episode was produced by Angel Carreras with engineering by Kwesi Lee. It was fact checked by Sarah Juarez. Cake and Cannon edits the show and the indicator is a production of npr.

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