DE Shaw fires DEI chief after The Post exposé on woke HR policies
Hedge fund terminates Maja Hazell and begins winding down its DEI unit as scrutiny over diversity policies grows on and off Wall Street.
New York — DE Shaw, the New York-based hedge fund with more than $70 billion in assets under management, has fired its diversity, equity and inclusion chief, Maja Hazell, last week in what sources described as part of a broader reevaluation of the firm’s HR policies following a New York Post exclusive on its woke-leaning practices. Hazell, who joined DE Shaw in October 2021 as managing director for diversity, equity and inclusion, previously led the initiative after a career at White & Case, where she served as global head of diversity and inclusion. The move marks a high-profile shift at a firm known for its algorithmic trading and for being closely watched for how it handles DEI-related matters.
The company said Hazell’s full-time role would be eliminated and that staff who reported to her would be reassigned to other positions as DE Shaw moves to effectively wind down its DEI unit. People familiar with the matter said the firm plans to offer Hazell a part-time consulting arrangement as part of her exit. The changes appear designed to shrink or reorganize the firm’s DEI footprint while maintaining a broader commitment to the firm’s talent strategy.
Hazell told The Post that she was not leaving DE Shaw, but she did not respond to questions about a possible part-time consulting role. She did not deny the firm’s plans to shrink the DEI unit when contacted by the newspaper. The Post’s reporting cited insiders who described the leadership’s concern about political or regulatory scrutiny tied to DEI initiatives and a desire to avoid being perceived as a DEI target in a shifting political environment.
DE Shaw’s founder, David E. Shaw, is a noted donor to Democratic political causes, and the firm’s public image had increasingly aligned with progressive DEI policies during the Biden administration. Some insiders described the hedge fund as a “poster child” for DEI—an image that, in light of the new leadership changes, insiders say the firm is reassessing in relation to potential regulatory or political risk. The fund’s performance, however, has remained strong: in 2024 its algorithm-driven trades were reported to have generated about $11.1 billion for investors, underscoring the company’s profitability even as it recalibrates its internal priorities.
The Post’s reporting last month also detailed a broader shift away from public-facing mentions of its DEI policies on the firm’s website. Critics within the industry have argued that such shifts could be intended to mitigate regulatory risk or political controversy while maintaining internal commitments to diversity, equity and inclusion. Archived pages showed three programs designed to recruit a more diverse candidate pool—Discovery for women, Momentum for LGBTQIA+ individuals, and Latitude for Native American, Black or African American, Hispanic or Latino, and other underrepresented groups—being listed at the firm’s campus site before they were removed.
The firm’s leadership has faced additional scrutiny in recent weeks, including a separate matter in which an ex-DE Shaw executive asked New York’s highest court to review the structure of work contracts the firm uses with departing employees. The Post reported that some insiders believed the contracts could be used to silence or limit employees who raise concerns after leaving the firm. In public statements, DE Shaw has not commented on the specifics of Hazell’s termination or the broader DEI program changes, and a spokesperson did not respond to The Post.
Industry observers note that while the move affects a single unit within a highly successful hedge fund, it may reflect a broader industry pattern as firms weigh political and regulatory risk associated with DEI policies. Whether other Wall Street firms will pursue similar restructurings remains uncertain, but the episode underscores the ongoing tension between DEI initiatives and the political and regulatory environment surrounding them.
The political context is notable: in January, President Trump signed an executive order encouraging the private sector to end DEI policies, and the administration subsequently communicated a broader stance against such policies. While regulatory actions and enforcement remain evolving, the public-facing stance from the federal level has become part of the backdrop for corporate HR strategies in 2025. Pam Bondi, who leads the Justice Department in this storyline, issued a memo emphasizing measures to discourage illegal discrimination, further shaping the environment in which private firms operate.
As DE Shaw navigates leadership changes and internal realignments, investors and market watchers will be watching for signals about recruitment, retention and the company’s ability to maintain its competitive edge amid political headwinds. The Post’s reporting and the firm’s responses have amplified questions about how Wall Street firms balance public perception, regulatory risk and the practical realities of attracting and retaining top talent in a rapidly changing policy landscape. The firm has not publicly elaborated on the future status of its DEI initiatives beyond confirming the personnel changes tied to Hazell’s role, and a spokesperson did not provide additional comment.