D.E. Shaw and Company, one of the biggest hedge-fund firms in the United States, is down sizing rouhgly 10% of its work force, some 150 jobs, after the loss of more than half of its hedge-fund assets.
D.E. Shaw, a global investment and technology firm based in New York City, was founded by David Shaw, who was a faculty member of the computer science department for Columbia University. The firm specializes in the application of quantitative and qualitative trading strategies to hedge fund management and in the connections of finance and technology.
The firm which, just as recently as August 2008, managed some $40 billion, has been hit hard by the financial crisis. This downsize will be among the largest cutbacks of a major hedge-fund firm. This year D.E. Shaw saw their profits decline to $21 billion. A D.E. Shaw spokesman said, “The D.E. Shaw group has taken steps to strengthen our business and maximize value for our investors over the long term.”
The lay offs will include back-office employees and some senior executives.D.E. Shaw To Cut 150 Jobs by Harrison Barnes