A letter of voluntary demotion is much like a letter of resignation in that you give up your position by your own choice. You may decide to accept a demotion to pursue goals outside of work such as college or to spend more time with your family. Sometimes, the stress of a job is too high for you to remain healthy. In any case, be sure to follow formal guidelines to ensure you show your employer the proper respect.
Write your letter in a formal tone, formatting it as a business letter with all of the paragraphs left-justified. It should be short and to the point. Write the date first, and open the letter with "Dear [name of your supervisor]:" Since you are already an employee, you do not have to write your address or the address of the supervisor. You can hand-deliver the letter at work.
State in the first paragraph, "I voluntarily [seek or accept] a demotion from the position of [your current title] to [the title for your new position], effective [date]." Be sure to give a reason for your decision. Write a sentence of explanation in the first paragraph. You might write, "I will begin college in the fall, and I will have to work fewer hours to do well in both my studies and my job."
Write that you understand that your demotion may result in a pay decrease of a certain amount. If you have already discussed the exact amount of the salary reduction with human resources or your supervisor, put the it in the letter. For example, "I understand that this demotion will result in a salary decrease from [your current salary] to [new salary]." If your benefits will be affected in any way, state that you understand these changes, too. If you go from full-time to part-time work, for example, you may no longer be eligible for health insurance or paid vacation days.
Close your letter with "Sincerely" and skip a few lines before typing your name. Put your handwritten signature in the space between the closing and your name.