Oil Prices will Produce BP Job Cuts

BP is to axe middle managers and could freeze projects as it grapples with the plummeting oil price, The Sunday Times reported, citing finance director Brian Gilvary.

"What you'll see with this simplification plan is that headcounts are starting to come down across all of our activities in upstream, downstream and in the corporate centres -- essentially the layers above operations," the newspaper quotes Gilvary as saying.

On Wednesday, BP will update on its exploration and production plans until 2010.

Gilvary told the newspaper the oil price drop was not likely to affect its long-term plans but some projects could be delayed or scrapped. "We have got flexibility to trim into next year if that's what we need in a new world of oil at $70 or $60 (a barrel)," he said.

BP was not immediately available for comment.

Reporting by James Davey