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Volkswagen’s HR Chief Gunnar Kilian Steps Down Amid Internal Disagreements

Lewis Freeman 1 day ago 3 min read

Leadership Departure at Volkswagen

Volkswagen has announced the immediate departure of its Chief Human Resources Officer, Gunnar Kilian. The decision was made by the Supervisory Board and, according to the company’s statement issued from Wolfsburg, was the result of “differing views on the management of subsidiary companies.” The move comes as the carmaker has faced increasing scrutiny over planned job cuts in recent months.

From the employees’ side, it was revealed that Kilian, aged 50, no longer enjoyed the necessary support for an extension of his contract, which was due to be reviewed in the coming months.

A Career Marked by Union Ties and Corporate Transformation

Kilian joined Volkswagen in 2000 and rose through the ranks, previously working in the company’s works council. Seven years ago, he became one of the youngest executives on the DAX board. During his tenure, he was regarded as a key driver of Volkswagen’s internal transformation.

Chairman of the Supervisory Board Hans Dieter Pötsch and CEO Oliver Blume both expressed their gratitude for Kilian’s contribution. “He played a significant role in shaping the transformation of the Group,” Blume stated, highlighting Kilian’s in-depth knowledge of Volkswagen’s structures as a valuable asset in preparing the company for the future.

Thomas Schäfer, head of the Volkswagen brand, will temporarily take over Kilian’s HR responsibilities.

Strained Union Relations and Job Cuts

Once seen as a close ally of the powerful IG Metall union, which holds considerable influence within Volkswagen, Kilian’s relationship with the union reportedly became strained. According to the Frankfurter Allgemeine Zeitung, this deterioration was partly linked to the significant job reduction measures recently introduced.

In December, after lengthy negotiations, Volkswagen and IG Metall agreed on a restructuring plan for the core VW brand. The deal includes plans to cut nearly a quarter of the company’s 130,000 jobs in Germany by 2030, a move that has sparked considerable public and internal reaction.

Volkswagen Shares Under Pressure

Meanwhile, Volkswagen’s preference shares (VW vz) came under pressure on Friday midday. As of 11:48am, the shares were down by 1.3% on the XETRA exchange, trading at €89.90. Earlier in the day, they had dipped as low as €89.46, compared to a starting price of €90.60. A total of 186,222 shares were traded during the session.

The share price remains significantly below its 52-week high of €114.20 reached on 11 March 2025, reflecting a current decline of 27.03%. Conversely, the 52-week low was recorded on 29 November 2024 at €78.86, with the current price still hovering above that mark. A further fall of just over 12% would mark a new annual low.

Earnings and Forecasts

Volkswagen reported its financial results for the quarter ending 31 March 2025 on 30 April. Earnings per share stood at €3.69, a sharp drop from €6.55 in the same period last year. However, the Group recorded a modest revenue increase of 2.78%, reaching €77.56 billion, up from €75.46 billion the previous year.

Analysts expect the company to distribute a dividend of €5.77 per share this year, slightly down from €6.36 in 2024. The average price target for the stock remains at €114.60, suggesting optimism from market watchers despite recent share price volatility.