It looks like those are sealed bearings that were pressed into the [unthreaded] bottom bracket shell. Actually, you can see the word "pressed" on the plastic seal you removed. To remove the bearings would probably require striking each axle end with a hammer and something to protect the axle ends (if salvageable and reusable).

The bearing cartridge does look to be in bad shape. If the axle is serviceable, you then need to determine if there's a source for replacement bearings and a shop (or other means) to press them in. Additionally, your chainring appears fairly worn. Ugh! This could be a costly or troublesome repair.

Perhaps some posters on the Vintage or Utility Cycling subforums have dealt with this type of bottom bracket.