Volkswagen's Human Resources Chief, Kilian, departs from the corporation - Volkswagen's staff head Kilian parts ways with the corporation
In a significant move, Gunnar Kilian, the Chief Human Resources Officer (CHRO) at Volkswagen AG, has departed from the company, effective immediately. The announcement was made in July 2024, and it follows disagreements over company governance and fundamental differences on key issues, as stated by the works council.
Kilian, a key member of the Group Board of Management, played a central role in overseeing extensive workforce restructuring and future-proofing the company’s HR strategies. During his tenure, he was instrumental in managing the reduction of tens of thousands of jobs, primarily through voluntary departures and early retirements, as part of Volkswagen’s broader plan to slash costs and transition towards electric vehicle (EV) production.
The departure of Kilian comes at a critical juncture for Volkswagen, as the company embarks on ambitious cost-cutting measures, including €4 billion in annual savings, with €1.5 billion earmarked for workforce reductions. The restructuring plan aims to cut nearly a quarter of the German workforce by 2030, specifically targeting up to 35,000 jobs, with about 20,000 departures already contractually agreed through voluntary measures.
While the restructuring is intended to streamline operations and support Volkswagen’s pivot to EVs, Kilian’s departure raises questions about the continuity and effectiveness of labor relations. His leadership was closely tied to the execution of these job cuts, and his sudden exit—marked by a lack of trust from both labor and management—could foreshadow challenges in maintaining consensus and worker morale as the transformation continues.
Thomas Schäfer, who is now interim responsible for HR on the Board of Management, faces the task of sustaining momentum and securing ongoing cooperation from both management and labor representatives. Kilian's association with the cancellation of Volkswagen's collective bargaining agreement last year has also raised concerns among labor representatives.
During his time at Volkswagen, Kilian played a key role in the transformation of the company, particularly in the realignment of its commercial vehicles business. His contributions were acknowledged by Hans Dieter Pötssch, Chairman of Volkswagen's Supervisory Board, and Oliver Blume, CEO of Volkswagen, who thanked him for his service. However, it is unclear at this time who will take on Kilian's responsibilities moving forward.
The European Parliament, the Council, and the Commission, key legislative bodies in the European Union, may express interest in understanding the industry, finance, and business implications of Volkswagen's restructuring and the departures of top executives, such as Gunnar Kilian, from the company.
Thomas Schäfer, now interim in charge of HR on the Board of Management at Volkswagen, may seek collaboration with industry organizations, financiers, and businesses to navigate the challenges that come with maintaining labor relations amidst a significant restructuring aimed at transitioning to electric vehicle production.
