If Woodger's rationale is being accurately reported, his ignorance is stunning. His best course of action would be to apologize to Torkildson and re-hire him. Everyone would have a good laugh at his stupidity and forget about the whole thing in a few days.
That would be the sensible, reasonable thing to do.
In my experience however, people with that level of incomprehension, especially in positions of relative authority, aren't very reasonable. So it's quite likely Mr. Woodger will continue to flaunt his ignorance and then complain about people commenting about it.