The aim of this study is to find out the effect of retrenchment on the morale of workers. To do this data I collected from primary and secondary sources. The main instrument for data collection is the questionnaire.
The data I presented in tables as frequency distribution and analyzed in percentages. The sample size was got using the Yaro Yamani formular and the hypothesis I tested. Having analyzed the data, the following findings I made:
1. The organization is said to be overstaffed presently due to necessary favoritism of their actions by members of the management.
2. Retrenchment exercise increases out put and performance of the workers.
3. All categories of workers can be affected. They include corrupt, fraudulent and performance of the workers.