The world-famous athlete, actor and former California governor fired Eric, a pro football hall-of-famer, after his "Arete" team lost the season's third task and he didn't fight for his position to stay.
"It's not a good feeling to get fired. It's not. I feel bad I didn't win any money for my charity, the Young Warriors, but being on this show and getting the charity's name out there, I hope I helped out," Eric said following his ouster.
The episode kicked off with the season's 14 remaining celebrities still split into two teams -- men "Arete" vs women "Prima" -- and awaiting their next task.
The season's third task was to create an eight-to-10 minute "live health segment showcase" for Welch's grape juice. The teams would be judged on best brand showcase, creativity of presentation and audience participation.
Eric missed the show's second task due to a scheduling conflict, so his team was probably hoping he'd return full steam ahead.
Retired undefeated American pro boxer Laila Ali stepped up to lead "Prima" because of her nutrition education and knowledge, while retired American mixed martial artist Chael Sonnen also volunteered to be project manager for "Arete."
Once in the boardroom with Arnold's nephew Patrick Schwarzenegger and famed chef Rocco DiSpirito serving as advisers, Arnold wanted to discuss each team project's strengths and weaknesses.
The Welch executives loved the men's audience participation in their celebrity variety show but thought their presentation was "disjointed" because they seemed to focus more on health rather than lifestyle. The overall brand message got a little lost in the hype.
As for the women, the executives appreciated the "millennial mom" message that came through their talk show as well as Ali's demo. The team lacked audience integration, however, their show was well executed and smart.
In the end, the women's "Prima" team finally won their first challenge, scoring Laila $50,000 for her Women's Sports Foundation charity.
It came to light that Chael thought ESPN sports analyst and former NFL running back Ricky Williams "turned on him" when he was supposed to be his right hand man, while Eric was an impassionate teammate. Chael therefore brought both of those men back into the boardroom with him.
Although Chael took "risks" that didn't pay off and an argument could be made for firing Ricky, Eric seemed to seal his fate when he previously said, "I put grape juice under each seat in the audience so they could have grape juice, and basically that was it. I don't feel like I need to do anything more."
Eric also told Arnold in the boardroom, "I don't have a problem if I'm fired." Arnold ultimately thought Eric lacked "hunger" and didn't care about his charity enough to fight.
"Eric, you are terminated," Arnold told him. "Now, get to the chopper."