Demoralised means stripped of confidence and spirit. A demoralised team, thoroughly demoralised, demoralised by the defeat.
The moral in it means morale rather than morality, which catches people out. It describes a group as often as a person, and a demoralised workforce is one that has stopped trying rather than one that has stopped caring. Americans spell it demoralized.
Definitions of demoralised
1adjectivedemoralisedStripped of confidence and spirit.C1
“After losing every match this season, the players were completely demoralised.”