The company may have an internal corporate policy specific to that business that says all employee matters are private. In which case by revealing the information to everyone they violated POLICY.
Employment law does not address it and therefore it is legal under the LAW to reveal the information.
There are no civil or criminal penalties for the employer violating their own policy in this case by revealing your demotion and why.
Policy can be changed or deviated from at any time by the employer as the need arises. The employer MUST comply with the law or face stiff penalties from the government and possible civil action if they don't.
"That's just my opinion, then again I might be wrong." Dennis Miller
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