I see nothing about a demotion of Goldsborough in 1940.
As a matter of fact, Goldsborough was appointed as a sort of roving ambassador for Luce, and as such was party to an extraordinary meeting as the one with Desmond Morton, noted in Col. Raymond Lee's report forwarded to Marshall's G-2 in November of 1941. It seems possible that his pro-Fascist sentiments and his "fashionable" anti-Semitism made him a liability as continuing as Foreign Editor as the war went on, but that Luce still wanted him around.