AOL reverses retirement benefit reduction after workers’ outrage

(Bloomberg) — It was another rough week for Tim Armstrong and AOL Inc.’s HR department.

AOL’s chief executive officer had to backtrack on a 401(k) policy change, after his comments defending the idea fueled an employee outcry. Armstrong last week said AOL needed the retirement-plan tweak to help offset health care costs, such as two employee pregnancies that resulted in “distressed babies” with more than $1 million each in medical expenses. Over the weekend, he reversed the 401(k) decision in a memo to employees.