Dodgers president of baseball operations Andrew Friedman made the announcement Tuesday, hours after Puig posted videos to his Snapchat account showing him partying with his new Oklahoma City teammates after a 3-2 loss at the Iowa Cubs.
"While we are disappointed in his and some of our other players' judgment, this is a matter we will address internally," Friedman said.
Puig, a major league All-Star in 2014, was optioned to Oklahoma City last week after the Dodgers could not find a taker for him before the non-waiver trade deadline. Tuesday, in his third game with Oklahoma City, Puig connected for his first home run with the Triple-A team.
Following Monday's defeat, Puig posted a video of himself shirtless in the team's locker room, smiling and saying: "It's so funny. We lose today, and everybody's happy."
Videos posted later showed Puig and his teammates dancing, singing and chanting, often using profanity.
A banner on one of the videos reads, "I Love this Team."
"I was surprised. I didn't see it until a little bit ago," Dodgers manager Dave Roberts said Tuesday about the video. "But we're going to take care of things. His goal is, and should be, to continue to be a better baseball player, so we'll handle it."
Roberts, who indicated last week that the demotion was made in order to improve Puig as a "player and a person," said he will not allow this situation to distract him and the team.
"I think that every organization will make decisions on how to handle things, and there are obviously liberties that every player deserves, certainly," Roberts said. "So we'll kind of handle it accordingly. For me, I just want to focus on the guys here."
In the video, Puig and his teammates made a reference to Rob Segedin, who replaced Puig on the Dodgers' roster after being called up from Oklahoma City. Segedin said the videos have been taken out of context and were just "inside jokes" meant to rally the club.
"The team hasn't been playing that well of late," Segedin said. "It was a lot of inside jokes and stuff that, when you put it on the internet, people can judge it a certain way. Those guys down there are trying to have fun. I've been there all year, and I know how the team works. There is nothing offensive toward me or anything like that. Those guys are great friends of mine."
The incident comes two days after Puig indicated to reporters through a translator that he was using his demotion to get his act together in order to get back to the majors.
"He's not there because of his conduct, the way he's acting," said Luis Matos, the Oklahoma City coach who interpreted for Puig on Sunday. "That's why he's here, to get better in that part of his life and his game."
Puig was pressed on what Matos meant by "the way he's acting."
"Everybody knows," Matos said, without asking Puig the question.
ESPN's Doug Padilla and The Associated Press contributed to this report.