Is anyone ever demoted or are they just fired ?

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The only time I have seen demotion is when people switch teams and the new team wants to level them down.

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I have never seen anyone being demoted. Only on principal/partner level where they loose responsibilities, but still stay partner though.

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In my previous non-Big 4 firm, I saw 2 MDs move back down to D. Don’t know the circumstances. Eventually they left.

I’ve been let go with many other co workers for what they called “performance” which was compete BS because there was no pip and it all happened during covid

Would they offer that as an option if you’re not cutting it like go back down a level or leave ? Or just ask you to leave

More likely that you stay an extra yr or 2 at a lvl vs promoted and then demoted. If you're not cutting it, you're rating will reflect it, put on a pip, and 90% of the time the pip is but a formality.
Performance improvement plan.

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This isn’t consulting, but the most egregious one was a cofounder and COO demoted to a SVP. The CEO and him had a falling out and the CEO had was the majority shareholder. He quit a year later

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