Volkswagen Relinquishes Leadership Role in Human Resources to Gunnar Kilian
Volkswagen AG has announced the immediate separation of Gunnar Kilian, its Chief Human Resources Officer, following a unanimous decision by the Supervisory Board[1][4]. The decision comes amidst a challenging phase for the German automaker, as it navigates a restructuring program aimed at reducing nearly a quarter of its German jobs by 2030[1].
The separation, effective early July 2025, was prompted by a loss of trust from both employee and employer sides. Fundamental differences regarding the company's future direction and controversial roles in workforce reductions and labor relations were cited as key reasons[1].
During Kilian's tenure, he oversaw significant job cuts, with plans to reduce approximately 25% of Volkswagen's German workforce through early retirements and voluntary severance rather than compulsory layoffs[1][2]. However, this move has strained labor relations, with the works council highlighting "fundamental differences on key issues" and pointing out that Kilian's name became associated with the termination of the collective wage agreement family in the previous year, considered a historic and sensitive breach by employee representatives[1].
In the wake of Kilian's departure, Volkswagen and the works council have emphasized the importance of finding a new HR chief who embodies transformation and renewal. Thomas Schäfer, Volkswagen brand CEO, will temporarily take over the leadership of the personnel department and the function of labor director during the succession search[1].
Daniela Cavallo, the chairwoman of the company works council, praised Kilian as an outstanding diplomat who mediated between different interest groups in often turbulent times. However, she also mentioned the breach of the tariff family last year as a central example of these differences[1].
Lower Saxony's Minister President Olaf Lies expressed his regret over the end of Kilian's term as the board member in charge of personnel. Lies particularly commended Kilian's contribution to resolving the wage disputes last winter and praised him as "a wise and highly respected strategist" who always acted "cautiously and in the interest of the company and its employees"[1][3].
The search for a permanent successor for the personnel director position at Volkswagen has begun, with the initiative for proposals for filling this key position lying with the employee side[1]. The works council evaluates the interim solution with Thomas Schäfer and Meiswinkel as stable, ensuring continuity during this transition period.
Volkswagen faces challenging conditions, including fragile automotive markets and an ongoing transition to electric vehicles, which adds complexity to this leadership change and the broader transformation strategy[1][2].
References: [1] Reuters. (2025, July 1). Volkswagen parts ways with personnel chief Kilian. Retrieved from [2] Automotive News Europe. (2025, July 1). Volkswagen parts ways with personnel chief Kilian. Retrieved from [3] Handelsblatt Global. (2025, July 1). Volkswagen trennt sich von Personalchef Kilian. Retrieved from
- Despite the challenging financial pressures and the need for job cuts in the automotive industry, the separation of Gunnar Kilian as the HR chief of Volkswagen has highlighted the strain on labor relations due to fundamental differences in the company's future direction, especially in the context of workforce reductions and labor relations.
- In the transportation sector, Volkswagen's business strategy is in flux as it navigates restructuring and jobs cuts, with the finance department playing a critical role in promoting transformation and renewal in the HR department.
- As Volkswagen seeks to electrify its vehicle portfolio and navigate through volatile markets, the selection of a new HR chief who embodies these values becomes essential, ensuring continued progress in both the industry and labor relations.
