I'm gonna have to side with the company on this one. Considering your friend's answer, it would not be unreasonable for xyz to assume that their prospective employee is a flaming homosexual, as he shows no interest in increasing the number of female coworkers.
Given how xyz would risk compromising the working environment for current, presumably heterosexual, employees as well as the company's image, I find that their decision to cut ties with your friend is sound.







