DE Shaw slashes its headcount by 10pc as investors lose faith

DE SHAW, one of the world’s largest hedge fund managers, is to cut its global headcount by 10 per cent.

The cuts, which equate to roughly 150 jobs, are the largest in the firm’s history and are expected to significantly impact its London and New York offices.

DE Shaw’s decision to scale back on staff numbers came as part of a lengthy review by the fund manager’s senior staff after it suffered from a large outflow of investors this year.

A statement from the group said: “The DE Shaw group has taken steps to strengthen our business and maximise value for our investors over the long-term.”

At the start of the month, DE Shaw managed around $21bn (£13.2bn) across its funds.

The New York based firm, however, has suffered from roughly $7bn in redemptions made during the last few months.

The cuts comes after one of the worst periods for the hedge fund sector.

DE Shaw, which was founded in 1988 by David Shaw, currently employs 1,500 people in the US, UK, Europe, Middle East and Asia.

Shaw no longer manages the day-to-day functions of the firm.