BP chief executive Tony Hayward has pledged to bring the embattled oil giant “back to being the industry leader” within the next two to three years.

The bold promise comes just days after Hayward set out plans for a sweeping reorganisation of BP, which is likely to lead to thousands of job cuts.

In a decisive break with the past of Lord Browne, his predecessor, Hayward said BP must cut unacceptably high costs and aggressively grow revenues.

Though Hayward has been careful not to criticise Browne, he is determined to drive through a “fundamental shift in the way BP does business”.

“John Browne built a fantastic company with a great set of assets,” said Hayward.

“There is nothing wrong with the strategy, but the execution has been poor.

“Our challenge is to show we can run those assets efficiently and I think we can prove that.”

BP was once the most admired oil company in the world, but has suffered a dramatic plunge in its fortunes in recent years.

A succession of problems have dogged the company, including a disastrous fire at its Texas City refinery in 2005, which killed 15, a leak at the Prudhoe Bay oil-field in Alaska and delays at flagship projects such as Thunder Horse in the Gulf of Mexico.

The group has also been hit with problems at refineries, leading some to run well below capacity, while its financial performance has lagged behind its rivals. Third-quarter results due on October 23 are expected to show a 19% dip in underlying profits to below $4 billion (£1.9 billion) Hayward, who plans to sweep away four layers of management, has blamed BP’s problems on inconsistent performance, overcomplicated systems and a general weakness in its culture.

“This is about trying to add a step-by-step improvement in revenues and productivity,” he said.

“This is not going to be an overnight restoration of BP to where it was three years ago. It is going to be a two to three-year journey.”

Hayward admitted that morale was low and criticised the company for failing to recognise and reward outstanding staff.

Bonus schemes will be shaken up with star performers paid much bigger sums and underachievers receiving far less – a tough model which is increasingly used by top investment banks.

The move follows a five-month strategic review by Hayward, who took over in May when Browne was forced to stand down early when it emerged he had lied to the High Court about details of his relationship with a former boyfriend.

BP’s gas, power and renewables division will be scrapped, with the operations split between the remaining exploration and production division and the refining and marketing businesses. Exact job losses and the costs of the shake-up have yet to be determined.

But Hayward denied BP is scaling back its commitment to alternative energy and will keep its slogan “Beyond Petroleum”.

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