Bankers' bonuses likely to halve, CS board member tells paper

* Kielholz: Investment bankers set to be hit hardest

* Kielholz: Swiss banks may shed more jobs

ZURICH Jan 29 (Reuters) - Bankers' bonuses are likely to to be cut in half, a Credit Suisse board member said on Sunday, adding in an interview with SonntagsZeitung newspaper that the Swiss financial sector should brace for further job cuts.

"Depending on the division and the position variable pay will sink up to 50 percent," said Walter Kielholz, member of the Credit Suisse board's compensation committee and Chairman of reinsurer Swiss Re.

He did not specify the time frame in which the reduction would take place.

Banks globally are shedding jobs as tough new regulation relating to their capital levels, and a difficult third quarter for trading income take their toll on investment banking divisions.

Credit Suisse last year announced it planned to cut 7 percent of its global workforce, and rival UBS has also announced plans to slash staff.

Kielholz said he thought more jobs would go.

"I expect banks in Switzerland to cut more jobs. Not only the big banks, also other institutions need to reduce their costs markedly. That will lead to the consequence that step by step in the financial sector several thousand jobs disappear," he said. (Reporting by Catherine Bosley; editing by Sophie Walker)