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The Collaborative International Dictionary of English v.0.48:

Demote \De*mote"\, v. t. [imp. & p. p. Demoted; p. pr. & vb. n. Demoting.] [Pref. de- + mote, as in promote; cf. L. demovere to remove.] To reduce to a lower grade or rank, as in the military, one's employment, or in school; to assign to a lower position. Syn: bump, relegate, kick downstairs, break one's rank. [Webster 1913 Suppl. +PJC WordNet 1.5]