Answer:
1. Morale
2. Production changes.
Explanation:
Morale: when a company goes the downsizing path in cutting labor cost, this can lead to a loss in morale as the remaining staff are not sure of their fates and due to how fast rumors travel this days this can affect their productivity.
Production changes: when staffs are downsize to save labor cost production would also be affected, less staff would results in less output as the number of man power has being reduced.
