Volkswagen Parts Ways With Its Human Resources Head, Gunnar Kilian
In a significant move, Volkswagen's Personnel Director, Gunnar Kilian, was terminated by the Supervisory Board in June 2025. The decision, made unanimously on Friday, follows disagreements over company governance amidst a high-pressure environment as Volkswagen restructures to focus on electric vehicles (EVs) and cost-cutting measures.
Kilian, who has been with Volkswagen since 2000 and served as Personnel Director since 2018, played a key role in collective bargaining and co-determination issues. However, his departure signals a broader leadership realignment as the company faces €4 billion in annual cost-cutting targets, including €1.5 billion from workforce reductions.
The works council, led by Daniela Cavallo, chairwoman of the Volkswagen Group Works Council, emphasized the need for a personnel fresh start in the role of the Labor Director. Thomas Schäfer, now CEO of the Volkswagen brand, has taken an interim role in HR leadership, inheriting the challenge of steering the company through these cuts and transformation efforts.
Volkswagen's HR department is central to executing large-scale workforce reductions. So far, about 20,000 employees have voluntarily agreed to leave via early retirements, normal retirements, or termination agreements. The company aims to reduce its headcount in Germany by about 35,000 jobs by 2030, a move described as "socially responsible job cuts."
The department will play a crucial role in ensuring the transformation is achieved with social responsibility and efficiency to position Volkswagen competitively in the EV market. Arne Meiswinkel will handle the operational tasks in the personnel department while Schäfer takes the leadership role.
In his statement, Kilian expressed gratitude for over 20 years with the company and highlighted his cooperation with colleagues and commitment during crises. Cavallo, however, stated that Kilian's name is associated with the termination of the collective wage agreement last year.
The search for a permanent successor to Kilian as Personnel Director is already underway. The initiative for proposals to fill this key position traditionally lies with the employee side. The company is focused on finding an individual who embodies transformation and renewal.
Lower Saxony's Minister-President Olaf Lies expressed regret over the end of Kilian's term and praised him as a "wise and highly respected strategist." Kilian also headed the Trucks division from 2020. During the works vacation at Volkswagen's headquarters in Wolfsburg, it remains to be seen how the personnel fresh start will impact the company's future course.
The HR department, with Thomas Schäfer taking an interim role, will play a crucial part in executing the company's cost-cutting measures and transformation towards electric vehicles. As the search for a permanent successor to the Personnel Director, Gunnar Kilian, commences, the focus is on finding an individual who embodies transformation and renewal within the industry, finance, and business sectors.
