I felt my soul getting crushed when I got told the news by my supervisor. Apparently he doesn't see any potential in my research contributing to their group anymore. I guess its partly my fault. I have the terrible trio: OCD, ADHD and depression all in one. But didn't reveal that to anyone ever other than family. So I often had to make excuses to take the day off otherwise I would have literally had a mental breakdown in public. Thought I had it under control but I clearly didn't. I have till September this year to submit my a revised thesis to be eligible for a Masters.
Even though thats about 4 months away, I am completely demoralised. My plan was to work in Academia, but now I don't know what jobs to apply for once I finish. I have no relevant internship experience other than soft skills. Even if I do get an interview out of sheer luck I do not know how to tell that I was demoted to a Masters. Also I don't know whether my supervisor will even write me a letter of recommendation... Please help.

Was this entirely unexpected? How far into your PhD are you? Is there any chance you can continue? Can you speak to someone in your department about your health issues? Perhaps it could be a mitigating factor.

I agree with TreeofLife. Had your supervisor warned you before about this? Seek some help. The counselling centre at your uni can be helpful. Also have a look at other resources, like higher degree association or so that can give some advise or inform you where to seek help. I hope you can continue as a PhD student if you like it so. Otherwise it won't be the end of the world either. You don't have to mention in your CV that have started as a PhD but simply that you have a master degree. And yes, your supervisor can still write you recommendation letters. Just try to maintain a good relation with him/her in any case.

There are lots of people who don't manage to get a PhD, who don't even get to university. As other posters have said, seek pastoral support from the university.

It is acceptable that a PhD student becomes ill during his studies, as long as you have a doctor to confirm your condition. You should approach your research director and explain the situation. Any student that has been unwell for some time can have an intermission; it is up to your Faculty’s discretion though the extent of it. This is what really matters even if your supervisors are not happy with this course of action. It is very convenient for supervisors to demote a student if he or she is not progressing according to their expectations. My advice would be: do not give up yet! It is a genuine and out of your control situation. Thus, you may be surprised how much people in management care. Perhaps you will be able to have a back dated intermission. Good luck!

I think in the long run that won't help. Academia is highly competetive so you have to ask yourself the question if this is the right working environment for your condition. I don't mean this in any way offensive, but even with a Phd you still have no relevant internships or work experience and if your supervisor sees no real potential in your work then this might not be the way to go. Try to get the master (which is not so bad, nobody needs to know that you were phd student) and then look for something else.

Some good advice here already, but to re-iterate and add to it:
- Consider a second opinion from someone else within the university such as a postgrad tutor who is unlinked to your project. If you feel your health is a mitigating factor you will need to be open with them about that and be prepared to provide documentary evidence (e.g. medical letter)

- If the situation is not salvageable, there are plenty of positive things you can do next. Get in contact with student support and the university careers service ASAP. Seek advice on what to do next and also how to manage your situation better in the future for whatever your next move is.

- Do not despair about your lack of other experience. Use the next 4 months carefully - as well as finishing off your masters, try to start making connections, getting a bit of experience here and there, even if just work-shadowing for a day or two. Everything will help in the long run. If you feel that academia is no longer an option, try to see this as an opportunity to try out different 'identities' until you find one that fits.

- It's going to be hard, but don't define yourself as 'failed PhD student', in your own head or out loud. Frankly, outside of academia, most employers won't care in the slightest if you don't have a PhD, and will recognise your Masters as a valid achievement in its own right. Focus on what you *have* done when it comes to job searching, rather than what you haven't done.

- Take time to recuperate and be kind to yourself. If you have hobbies outside of academia, give yourself some respite in these. If you don't have any, then consider cultivating some, as it may have benefits for your well-being more generally.

- Finally, don't let how you feel right now stand in the way of you getting that Masters thesis submitted. Make what you've worked on so far count.

Good luck!

I am extremely sorry for replying this late. I agree with Hazy Jane completely. I have been the president of postgraduate society as well as the postgraduate officer while I was a PhD student for 3 years. I strongly recommend you to get a documentary evidence of your condition and present it to your PhD supervisor through proper channel. I think once he knows this information he will think of an alternative of supervising you instead of taking an extreme decision of demoting you. I am pretty sure he will think of something to keep you as PhD student otherwise he can be answerable to severable committees. But yes for those you have to put your case on the table.

If you don't continue with PhD then please don't despair. PhD basically equips a person for conducting independent research. This something you can aquire even if you work volunatrily with an academic and publish. Obviously to support yourself you will have to work but then you won't be technically a student so you won't be obliged to meet deadlines.

Finally, think of part-time PhD. Seriously, PhD is overrated. Just publish you will be in academia forever.

Hope this helps.

This reply is late as well, but it would be good to hear from the OP and find out how you are doing?

This is a gentle warning from someone who successfully appealed against an MPhil downgrade, but then got downgraded again anyway at the additional assessment. Sometimes even with the extra time a project just isn't suitable for PhD through no fault of the student. In your case it sounds like you have a very legitimate case for appeal and I would still advise you to do it, but be warned that if you've had other problems with your project they won't vanish after an appeal - especially given that you are in fragile state right now you need to be positive that you want to take the extra time to complete your project.

I don't want to discourage you at all, indeed I encourage you to keep trying if the PhD is what you want. On the other hand if you wish to just finish and pursue employment then that's fine and you can sell your research as experience and any teaching or tuition you've done as employment. Plus your supervisor kind of HAS to provide you with a reference, I know it can be awkward but they usually get into trouble from the university if they refuse :p