According to Detroit News: General Motors says it will cut 21,000 U.S. factory jobs by next year and phase out its storied Pontiac brand as part of a major restructuring effort needed to get more government aid.

General Motors Corp. launched its bond exchange offer this morning to its holders of $28 billion in unsecured debt, offering them 10 percent of the equity in the company and accrued interest — in an effort to avoid a bankruptcy filing before the end of May.

GM also confirmed the morning it plans to phase out its 83-year-old Pontiac brand by 2010, while it plans a final resolution for its Hummer, Saab and Saturn brands this year.

It’s not easy being a part of GM these days. President Obama ordered the release of former CEO Rick Wagoner as bailout discussions continue. New GM man in charge Fritz Henderson announced that GM will not cut either make, stating his belief that a “Four Core Brand” initiative will help the company. Is Pontiac one of those four? Nope, though GMC is – but company execs state Pontiac will remain as a “niche brand” – whatever that means.

At least for now it appears Pontiac will stick around, but 1600 white-collar General Motors workers will not. North American Pres. for GM Troy Clarke stated these workers will be laid off later this week, mostly in the Southeastern Michigan region. And many fear this may only be the beginning.