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Wow I am so sorry to hear that OP and especially with how long you have been there and it being the holidays. I agree with you, they should have let you choose a relocation if you wanted that and not make you reapply for a job you already had. That is shameful.
That's a lousy way of operating. But it's what companies do when they want to downsize, they essentially push people away. If you want to continue with them you might as well do the reapplication procedure. But you might be better off to just strike out for something new.