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To the average restaurant. >> obamacare is going to kill off the small businesses. >> we no longer have free enterprise capitalism in health care. >> now tim armstrong is saying aol's employee benefits need to be cut because of obamacare. >> obamacare is an additional $7.1 million expense for us as a company, so we have to decide whether or not to pass that expense to employees or whether to cut other benefits. >> the "l.a. times" reports health insurance experts aren't sure where armstrong is getting that $7.1 million figure. experts we spoke to were equally baffled. but in armstrong's defens...

Of course, oil prices went down and we never got rid of the baggage fees, right? this permanent structural change to the cost structure that benefited them, and you're completely -- about this kind of panic that runs through chain e-mails and just water pool conversation about so-and-so's boss, cutting back part time, hours. they now have obamacare to hang it on. >> right. it should be said, that's a whole different set of fish there. that's for only smaller employers. it's been delayed so it's not happening. it's true, there's been this generalized move to make any benefit change the result o...

Blame -- >> exactly. >> -- on obamacare. that's a very, very big deal. the 401(k) change that armstrong made has two effects basically. one is the main thing it does, it saves the company money because it only gives payout for the 40 401(k). the matching at the end of the year. the company wasn't paying the money it would have paid if the 401(k) made money during the year. the other thing, if anybody wants to leave the company during the middle of the year, they have to contend with the fact they're going to get a big payout for the 401(k) at the end. it gives them a disincentive to leave in t...

>> as a ceo and as a management team, we had to decide, do we pass the $7.1 million of obamacare costs to our employees or do we try to eat as much of that as possible and cut other benefits? >> meet tim armstrong. he's the ceo of aol. since taking over in 2009, aol has spent hundreds of millions on properties like "the huffington post" and patch while laying off thousands of employees. but armstrong is doing okay. in 2012, he took home $12.1 million. so he's pretty good at making money. but what kind of boss is he? well, he once fired an employee on a conference call. >> if you think what's g...

Taking this picture of armstrong. armstrong later apologized but lenz remains no longer with the company. lenz was an employee of patch. a hyperlocal news site that armstrong founded and was personally invested in. it was one of the first accusations he made as ceo of aol. it was armstrong's baby. aol sunk $300 million into patch and sold it off losing upwards of $200 million. laying off hundreds after patch employees in the process. some on another conference call. >> um, unfortunately, your role has been eliminated and you no longer have a role at patch. and today will be your last day of em...