Let's be honest, if his firm didn't kick up a stink, nobody would even know who he worked for. I think a more suitable punishment would be a public laughing at. Invite all the lycra nazis to Liverpool street, strap him into one of those kiddy bicycle trailer things, and let everyone point and laugh at him for a couple of hours for being a bell end.
The dude's 21, he's still naieve and stupid. He made a booboo and it's being blown way out of proportion. I'm not condoning what he said, but we've all been there. Taking away his job and potentially his career is a bit OTT.