Bear Stearns plans to cut 650 more jobs, mostly from its fixed income business, bringing the total cuts to about 1,500, or nearly 10 per cent of the investment bank's work-force.

Most of the cuts will come in the US but the company is also cutting about 30 jobs in the UK, according to a person familiar with the matter. The 650 job cuts will fall across the entire bank but are focused in fixed income, especially mortgage securitisation and trading positions.