I have never felt so awful. I've been working for 3+ years for a director role that I feel I've very much earned. I was told that it is being given to someone beneath me and I should take a role in a different department. I will 100% be expected to coach said person to assume the role that I thought I earned. What would you do?

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Leave. You're not valued / appreciated in your current role. Switch to auto pilot and focus your energy on finding a new job. The upside is that you should have the relevant skills and experience to be a director elsewhere. So you haven't wasted your time by staying there, but it's clear there's no future for you at your current workplace.

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Hate to say it but I agree with this. There is no indication more clear than being passed up for promo, esp. at your level

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