Each country previously reported directly to Pedersen, but will now answer to the former Grayling Germany CEO.
The UK is unaffected by the changes, which also extend beyond the continent.
Turkey has been added to the remit of Loretta Ahmed, who was already responsible for the Middle East and Africa, to create the META region.
Ahmed (née Tobin), who is a former UK chief executive of the agency, will manage offices in the UAE, Qatar, Turkey and Angola.
The changes also formalise agency veteran Jan Simunek’s position, leading Grayling Central and Eastern Europe and Russia.
Pedersen, who took over in February, said: ‘The realignment is driven by client need. We serve our clients best when we have strong leaders in place who are attuned to regional needs and socio-economic trends, and empowered to do what’s best for clients on a local and regional basis.’
Although Grayling recently reported a 7 per cent slide in first half revenues, an agency spokesman said the changes were part of a drive for growth and did not include job cuts.
Michael Murphy, who was CEO of Grayling before Pedersen, left the agency earlier this month after a stint as non-executive chairman.