I've been working at my company for 7 years in the same role. I've always had good performance feedback. We are currently having a restructuring of our division, which has been quite stressful, but I've been hoping it might create an opportunity to take on more responsibilities or apply for a more senior role. The new structure hasn't formally been announced but my manager let slip in a meeting that there's going to be a new role created for a person who has previously worked for us as a contractor. This person has a very similar skill set to me, except that they have a qualification/experience in one particular area which I don't have and couldn't practically get. In the conversation my manager was talking about this person in glowing terms and suggesting that they would take on a project which I would normally expect to have led. I can see if they are hired they are going to take a lot of the 'stretch' bits of my existing role, plus any opportunities for future development. I also think there is a possibility I would be asked to report to them. I've been told my role is not being made redundant but my reporting line might change. If I did report to the new person it would effectively be a demotion as my current manager is senior to them.
I feel absolutely gutted and like I'm going to be forced to leave a job I've previously enjoyed. I'm not sure if the new role will be advertised, but if they frame the JD in a way that requires this particular qualification/experience then I wouldn't have any real chance of getting it, and anyway my manager has made it clear who they want to hire. I am also feeling upset that my manager would mention this in front of me without anticipating how I would feel about it, it felt really inappropriate and like they don't value my contribution at all.
I'm really not sure what to do, perhaps it's time to start looking for a new job but I like my current organisation and have been happy there.