A
demotion is a compulsory reduction in an
employee's
rank or
job title within the organizational
hierarchy of a company, public service department, or other body. A demotion may also lead to the loss of other privileges associated with a more senior rank and/or a reduction in salary or benefits. An employee may be demoted for violating the rules of the organization by a behavior such as excessive ,
misconduct, or
negligence. In some cases, an employee may be demoted as an alternative to being
laid off, if the employee has poor job performance or if the company is facing a
financial crisis. A move to a position at the same rank or level elsewhere in the organization is called a lateral move or . A voluntary move to a lower level is also a deployment as it is not a compulsory reduction in level. Demotion is often misinterpreted simply as the opposite of a
promotion, however it is only one means of undergoing a reduction in work level.