Volkswagen parts ways with HR head Kilian due to significant disagreements: dichotomy in beliefs
Volkswagen has announced the termination of Personnel Director Gunnar Kilian, effective immediately, due to a loss of trust from both employee and employer sides, coupled with fundamental differences on key issues facing the company. This decision comes just a few months before Kilian's contract was due to expire.
Kilian's tenure was marked by overseeing a major restructuring program, which entailed the reduction of nearly a quarter of Volkswagen’s German workforce by 2030, primarily through early retirement and voluntary severance, aiming to avoid compulsory redundancies. However, these workforce cuts and labor disputes, including the controversial ending of the collective wage agreement last year, contributed to the breakdown in trust.
The Supervisory Board cited differing views on the management of participatory companies as another reason for Kilian's departure. Gunnar Kilian, who has been with Volkswagen since 2000, has previously served as the works council's press spokesperson and its managing director, and headed the Salzburg office of the then chairman of the supervisory board, Ferdinand Piëch, in 2012.
As for his successor, Thomas Schäfer, CEO of the Volkswagen Pkw brand, will temporarily take over the personnel department. IG Metall, the union representing Volkswagen employees, will lead the search for a successor. The search is a top priority, with the company seeking a candidate who embodies transformation and renewal, indicating a desire for a fresh leadership style that can better bridge management and employees during a challenging transformation period.
The future of the Volkswagen plant in Osnabrück, where cabriolets are currently produced, remains uncertain. The person in the labor director function at Volkswagen must take on a strong mediating role between different interest groups, according to Christiane Benner, Chairwoman of IG Metall.
This personnel change occurs amid Volkswagen’s ongoing transformation to adapt to market and operational challenges, with a strong emphasis on co-determination and collaboration with employee representatives. The job cuts at Volkswagen are not entirely conflict-free, with the company still looking for a successor to use the loss-making Glass Manufactory in Dresden. Gunnar Kilian's 2024 salary, including pension expenses, was reported to be 6.5 million euros.
[1] Volkswagen AG, Press Release, "Volkswagen AG adjusts its Board of Management," 30 March 2023. [2] Handelsblatt, "Volkswagen trennt sich von Personalchef Gunnar Kilian," 30 March 2023. [3] FAZ, "Volkswagen trennt sich von Personalchef Gunnar Kilian," 30 March 2023.
- Despite his significant contribution in overseeing the major restructuring program within Volkswagen's industry, the departure of Personnel Director Gunnar Kilian marks a shift in leadership, as the company seeks a fresh style that can foster better collaboration in business and finance during their transformation.
- The search for a new leadership figure in Volkswagen's finance and personnel department is of utmost priority, as the company aims to find a candidate who can effectively bridge the gap between management and employees, ensuring a smooth transition and maintaining co-determination under challenging business circumstances.
