Potential Threat

In the corporate world there is no such thing as friends, everyone is a threat. My boss has decided to hire a new or experienced staff to helped me out. It sounds very comforting as this will lightened my job but in real this is the threat I'm facing. The old has not gone and a new is coming. What I really had in mine would be better for my boss to give me a raise to motivate me in accomplishing more. Now how do I eliminate this threat or should I seek new prospects?

-There is only that limited space to climb up the pyramid so its either you leave or I leave.-