Scaling the rigged body

Hello! I have a rigged body, an armature and now I think I should scale it all down to some smaller size. But when I try to apply scale to an armature it deforms badly. So how to deform both mesh an armature properly so that the height of me character becomes 2 instead of 5?

Here is my blend file, if someone is so gratefull to look at my problem

https://www.dropbox.com/s/9vmkm0zsspot2sj/Monster7.blend?dl=0