NEW YORK --- American International Group, the insurance giant bailed out by the government, will remove AIG from the name of a U.S. auto insurance unit and cut 6.6 percent of jobs there to better attract a buyer for the operation, the Washington Post reported.

In January, AIG will start calling its aigdirect.com business unit 21st Century Insurance, reverting to the brand name of a California-based car insurer acquired last year, Nicholas Ashooh, a spokesman for AIG, told the Washington Post.

AIG also will close offices in 12 cities, the company said in an Oct. 21 letter to employees. The unit had about 5,500 employees as of September 2007.

AIG is selling businesses including auto insurance, U.S. life coverage, and a plane-leasing unit to repay the government loan that rescued it from bankruptcy in September.

AIG plans to launch new television commercials, a revamped logo and Web site on Jan. 5. AIG, which has owned a stake in 21st Century since 1994, acquired the remaining 39 percent of shares for $813 million in September 2007.