The organization I work for is going through a restructuring. I currently report to the person just under the CEO (my current boss is essentially a Vice President level). In the restructuring, my department and another department are going to merge, and I'll be reporting to a person who is currently my peer.
I will be maintaining my same job title, salary, and direct reports, though.
My boss says this isn't a demotion, and that I'll maintain a "dotted line" reporting relationship with her (my current boss). But I I will be the only person with my title level who will now be an indirect report to my current boss instead of a real direct report. No one else in the company with my title reports to someone who reports to the VP. They all report directly to a VP level person.
I have expressed my concern that this feels like a demotion. Part of the reason for the merger is that the VP I report to has 9 direct reports, which is too many. But she'll already be moving 2 people (neither of whom have my level of title, neither of whom have direct reports) to others to supervise.
The other dynamic is that the peer I'll now be reporting to is a friend of mine, a lovely person, and someone who is much older than me, and who is planning to reduce her hours and retire in the next 2 years. Her unit does a lot of things in common with mine, but it's actually smaller and serves fewer customers. It makes no sense to me why she'll want to take over supervision of a unit that is actually bigger than her own, at this point.
At minimum, I want to propose to be a co-director with the co-worker whom they are proposing would be my boss.