Aug 4 (Reuters) - BP will announce updates on its

$5 billion cost-cutting initiative on Tuesday, amid growing

pressure from activist investor Elliott Management to take

stronger action to reduce its operating expenses, the Financial

Times reported on Monday.

Elliott wants BP CEO Murray Auchincloss to add another $5

billion of cost savings to the $4 billion-$5 billion in

reductions by 2027 he announced in February from a 2023

baseline, the FT report said.

Reuters could not immediately verify the report. BP and

Elliott did not immediately respond to a request for comment.

The hedge fund has "identified tens of thousands of BP

support staff globally" as an example of the cost base, the

report added.

BP has already cut $750 million of costs towards its

target in 2024, and is looking to reach its cost savings target

through job cuts, divestment and streamlining supply chains, the

FT report said.

Reuters

reported

in April that the activist investor would like BP to cut

its spending to around $12 billion a year, down from a current

range of $13 billion-$15 billion, through to 2027, and deepen

its cost cuts, especially on administrative expenses.

Elliott, which holds a stake of little more than 5% in

BP, also

wants

the oil major to replace its strategy chief and create

separate units for upstream and downstream activities to improve

accountability.