Origin Energy chief executive Grant King said the company was focused on lowering costs. Picture: Alan Pryke Source: Herald Sun ORIGIN Energy will slash another 350 jobs, with Victoria and Queensland bearing the brunt, taking its total cuts to 850 this financial year. Shareholders abandoned the stock on the ASX200, sending it on its sharpest daily plunge in four years. It tumbled 8.48 per cent, or $1.05, to $11.33. Costs at the project - one of the biggest resource developments in the country - will now come in at an estimated $24.7 billion. It was previously predicted to cost $23 billion. Earnings were also hit by a decision to freeze electricity tariffs in Queensland, the company said yesterday. Net profit was down 34 per cent, to $524 million, in the first half. Origin now says its full-year profit will fall by between 10 and 15 per cent. A greater tumble than the 5-10 per cent, previously tipped. The company was also hit with a downgraded credit rating by Standard & Poor's. The long-term senior unsecured credit rating for Origin from BBB+ (negative outlook) was changed to to BBB (stable). The company said it would not be raising equity following the re-rating. Company managing director Grant King said the company was taking the necessary measures to lift operations. "As Origin's existing business matures, it is important that we improve our operational effectiveness," Mr King said. We are focused on lowering our cost base, meeting competition more effectively and maximising cash flow from our existing business. Origin employs the majority of its staff in Queensland, followed by Victoria. These two states are expected to face the greatest job losses. Mr King said Origin's investment in the Gladstone project would now peak at $4.4 billion, up from the initially projected contribution of $3.6 billion. The company holds 37.5 per cent in the project and expects it to provide the main source of growth in the future.