Source : Webster's Revised Unabridged Dictionary (1913)

Demoralize \De*mor"al*ize\, v. t. [imp. & p. p. {Demoralized};
   p. pr. & vb. n. {Demoralizing}.] [F. d['e]moraliser; pref.
   d['e]- (L. dis- or de) + moraliser. See {Moralize}.]
   To corrupt or undermine in morals; to destroy or lessen the
   effect of moral principles on; to render corrupt or
   untrustworthy in morals, in discipline, in courage, spirit,
   etc.; to weaken in spirit or efficiency.

         The demoralizing example of profligate power and
         prosperous crime.                        --Walsh.

         The vices of the nobility had demoralized the army.
                                                  --Bancroft.

Source : WordNet®

demoralized
     adj : made less hopeful or enthusiastic; "desperate demoralized
           people looking for work"; "felt discouraged by the
           magnitude of the problem"; "the disheartened instructor
           tried vainly to arouse their interest" [syn: {demoralised},
            {discouraged}, {disheartened}]