My friend was just demoted, she was in charge of a preschool, with about 4-5 caretakers. A close friend of the lady who owns (inherited) the whole business, (including several other locations,) moved back into town a couple weeks ago. She hired her old friend, who should be at the bottom of the pecking order, like any new hire, but was instead put in charge of the preschool. My friend's pay was not docked, however it is a much more stressful position. The children's parents often remarked to the owner about how good my friend was and lovingly ran the house. She ran the house very well.
As for possible reasons for demotion- the preschool is run out of a house and one of the rooms not used for the daycare is rented out to another of the owner's friends. She is a lonely, bitter, 50 year old woman who goes into the preschool after hours and takes pictures of anything not perfectly organized, which is usually like one or two bottles in the sink, or blanket put away bundled up but not folded. My friend constantly works overtime without (the already very little) pay to make sure everything is well cleaned.
When my friend asked why, the owner would not say anything other you will love your new position and the house will be run her way.