For the reasons I listed in a post below, I don't think this demotion is about Genie's weight/looks.
But everyone doesn't feel that way. And this is a looks/appearance based business, and that factually has been an issue that Genie has been very open about herself, and one that has factored into how Laura is portrayed/presented on the show.
I get that it's a sensitive topic for some, but why try and ignore something that not even Genie ignores? I mean she's the spokeswoman for a weight loss company.