Economic crisis is possible to happen in anywhere, and it definitely did in most of the countries around the world. Kurdistan is one of the region that economic crisis has happened in. It has affect everyone their jobs, their salaries , everything that has to do with money is affected. The common part of the economic crisis is downsizing event that happens in the companies that are impacted by the economic crisis. This study has covered the impacts of downsizing event on employee morale. How can employee maintain on their loyalty, being satisfaction with their job and for example salaries, their commitment, and motivation. It studied Atlas company, and used quantitative approach, in which questionnaire were used as a tool for gathering data. The size of the sample was kept to 25, but total of 15 questionnaires were attained filled. Through the result it was concluded that downsizing event does not impact on employee morale, and their work performance.