The aim of this study was to establish the Impacts of staff rationalization on the morale of the employees, amongst the objectives of the research were to investigate if rationalization affected the productivity of the staff, to find out whether rationalization has brought about uncertainty and poor attitude to work. In pursuance of the above objectives, the researcher expected to establish whether the rationalization exercise as a reform strategy affected the delivery of services by the employees and their general wellbeing. Finding revealed that employees were of the opinion that their employer did not prepare them adequately before rationalization and they were uncertain about the future of their jobs. For rationalization to work, as a reform strategy, it must be care/idly planned and managed. Workers who remain after rationalization must be reassured about the security of their jobs and trained to gain necessary skills to meet the challenges of their increased workload.