Volkswagen Severes Ties with HR Head Kilian: 'Fundamental Disagreements' - Translation: Volkswagen Parts Ways with HR Director Kilian Due to Significant Discrepancies
Gunnar Kilian, Volkswagen's longest-serving board member and Personnel Director, departed in June 2025 due to fundamental disagreements over the governance of Volkswagen's sprawling holding company structure. His exit followed a loss of trust from both employee and employer sides, particularly amid strained labor relations and restructuring tensions.
Kilian played a pivotal role in Volkswagen's ambitious restructuring plan, which includes cutting 20,000 jobs by 2030 through voluntary departures and early retirements to avoid compulsory layoffs. His departure injects uncertainty into workforce reduction efforts and cost-saving targets, as he had been a crucial bridge between management and labor.
Thomas Schäfer, currently CEO of the Volkswagen brand, has been appointed as Kilian's interim successor for Human Resources on the Board of Management. Schäfer now faces the challenge of balancing aggressive restructuring targets—such as €1.5 billion in annual labor cost reductions—and maintaining social stability, all while steering the company through a strategic shift towards electric vehicles amid rising competition and weak European EV demand.
The deciding factors for Kilian's departure include fundamental differences on central issues of the company and lack of support for an impending contract extension. The Supervisory Board made the decision to separate from Kilian due to these differences and lack of support. Kilian had been proposed by the employee side, like other companies subject to co-determination.
The future of Volkswagen's plants is not entirely conflict-free, with the company still looking for a successor user for the Glass Manufactory in Dresden. The search for a successor to Kilian is a top priority for the IG Metall union, with Christiane Benner, IG Metall chairwoman, stating that the search is a top priority for her personally.
The severance program, which has only been rolled out in offices, needs to be implemented in the plants. The company is boosting early retirement programs to phase out jobs, with further job cuts being phased out through regular retirement. The future of the Osnabrück location, where VW currently produces Cabrios, remains uncertain.
Notably, Gunnar Kilian has been with VW since 2000, with an interruption, and has held various prominent roles within the company. Arne Meiswinkel, personnel director of the Volkswagen Pkw brand, will join the extended management board and be responsible for personnel. Daniela Cavallo, VW works council chairwoman, is not available for comment.
Kilian has been on the board since 2018 and previously was the press spokesman and managing director of the works council. In addition to his role in the personnel department, Kilian has been responsible for the Trucks brand group, including Scania, MAN, and larger VW buses. Kilian's salary in 2024, including pension expenses, was 6.5 million euros.
[1] Reuters, "Volkswagen's personnel chief Kilian to step down amid restructuring tensions," June 2025, [https://www.reuters.com/business/autos-transportation/volkswagens-personnel-chief-kilian-to-step-down-amid-restructuring-tensions-2025-06-01/](https://www.reuters.com/business/autos-transportation/volkswagens-personnel-chief-kilian-to-step-down-amid-restructuring-tensions-2025-06-01/)
[2] Automotive News Europe, "Volkswagen's Kilian steps down as personnel chief amid restructuring tensions," June 2025, [https://www.autonews.eu/article/volkswagen-kilian-steps-down-personnel-chief-amid-restructuring-tensions](https://www.autonews.eu/article/volkswagen-kilian-steps-down-personnel-chief-amid-restructuring-tensions)
[3] Handelsblatt, "Volkswagen-Personalchef Kilian geht: Streit um die Zukunft der Muttergesellschaft," June 2025, [https://www.handelsblatt.com/unternehmen/autos/volkswagen-personalchef-kilian-geht-streit-um-die-zukunft-der-muttergesellschaft/27099242.html](https://www.handelsblatt.com/unternehmen/autos/volkswagen-personalchef-kilian-geht-streit-um-die-zukunft-der-muttergesellschaft/27099242.html)
[4] Frankfurter Allgemeine Zeitung, "Volkswagen-Personalchef Kilian geht: Streit um die Zukunft der Muttergesellschaft," June 2025, [https://www.faz.net/aktuell/wirtschaft/autos/volkswagen-personalchef-kilian-geht-streit-um-die-zukunft-der-muttergesellschaft-17230493.html](https://www.faz.net/aktuell/wirtschaft/autos/volkswagen-personalchef-kilian-geht-streit-um-die-zukunft-der-muttergesellschaft-17230493.html)
- The departure of Gunnar Kilian, Volkswagen's personnel chief, has created uncertainty in the industrial sector, as he was a crucial bridge between management and labor during the company's restructuring and was involved in finance-related decisions such as setting cost-saving targets.
- In the business world, Volkswagen's Supervisory Board's decision to separate from Kilian was not only due to disagreements over the governance of the holding company structure, but also due to differences in central issues and lack of support for an impending contract extension, which are significant factors in the finance and industry sectors.
