Shaf'i madhab don't demand FGM because it's haram. There's a difference between female circumtion and FGM, the former is recommended and the latter is totally haram.
FGM is waajib according to shafi'i madhab. Some say this refers only to removal of 'some skin', others view it as something more drastic. Female circumcision and fgm are used interchangeably by most people. In any case it's fairly immaterial to the conversation overall, as fgm encompasses all forms of mutilation, including whatever you view female circumcision to be.