I was hired half a year ago as an IT manager responsible for a geographical region. I report to the global head of IT. I'm the sole responsible for the strategy definition, setting the processes we follow, aligning them with other teams, for coordination tasks, budgeting, hiring/ firing of IT people in my region. Obviously, also for the performance of our function. (I do consult with my boss of course, the word "sole responsible" is to mean that I'm not one of the managers responsible for that).
Now I learn that my boss is searching for a person at an intermediate level between himself and me, or more precisely us. The person will be responsible for my and one more region directed by a colleague - however, the other region is much smaller than mine. So I will basically have a boss who will be responsible for mostly what I do: creating the strategy, selling it to other units, etc. all the managerial tasks for my region and another one which is much smaller and less relevant.
I see it a bit as a demotion. Given our being extremely understaffed I suppose this will mean me getting back to development tasks. And I accepted this position to learn something new. Do I have reasons for that? What should I do?
Let me add: It's not just about my region. He's trying to do the same for another region, but that's not a very good consolation.