Fire him. Period. He'll do this to someone else who might not report it. Anyone who calls a woman a milf to her face has NO respect for women, and will cause

Fire him. Period. He'll do this to someone else who might not report it. Anyone who calls a woman a milf to her face has NO respect for women, and will cause problems with women at the company in 1000 other small ways (and possibly big ways). Be that guy that says he's not going to let this shit slide, and then actually follows through. Of course the woman said she doesn't want to cause trouble... she's trying to cover her own ass to make sure that you're not going to get mad at her (yes, I'm sure it crossed her mind). She reported it to you for a reason. Because it was completely unacceptable. Fire him. Fire him. Fire him. And then explain to the rest of the company exactly why he was fired. And that you're not going to tolerate that behavior. You can leave out details of who and why, even white lie if there's only one woman on the team, that it was a friend or something... If you work in a state without at-will employment, you might need to talk to a lawyer... hopefully your HR team can help you figure out the safe way to do it. But do it. Even if it's not safe. Do it because it's the RIGHT thing to do.