demote

[dih-moht]
verb (used with object), demoted, demoting.
to reduce to a lower grade, rank, class, or position (opposed to promote ): They demoted the careless waiter to busboy.

Origin:
1890–95, Americanism; de- + (pro)mote

demotion, noun
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World English Dictionary
demote (dɪˈməʊt)
 
vb
(tr) to lower in rank or position; relegate
 
[C19: from de- + (pro)mote]
 
de'motion
 
n

Collins English Dictionary - Complete & Unabridged 10th Edition
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Etymonline
Word Origin & History

demote
1893, Amer.Eng. coinage from de- + (pro)mote. The original reference describes it as "used generally in that section of the country" (Iowa, U.S.A.), which implies an earlier date. Related: Demotion (1901).
Online Etymology Dictionary, © 2010 Douglas Harper
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Example sentences
To demote, when it came in during the war, was scarcely challenged.
It will become illegal for businesses to hire, promote or demote people on
  grounds of age.
However, make a mistake and the coach will demote you.
It's against the law to dock her pay or demote her to a lesser position because
  of pregnancy.
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