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.

1890–95, Americanism; de- + (pro)mote

demotion, noun Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
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World English Dictionary
demote (dɪˈməʊt)
(tr) to lower in rank or position; relegate
[C19: from de- + (pro)mote]

Collins English Dictionary - Complete & Unabridged 10th Edition
2009 © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009
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Word Origin & History

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
Fiction's current willingness to take wild liberties with the past may well
  come from a sense of its own cultural demotion.
But his demotion from the modernist canon has been prompted by moral
  disapproval as well.
Since then, many scholars have wondered what this economic demotion means for
  the bank's global poverty counts.
The demotion of one device is, potentially, the promotion of a bunch of others.
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