As the firm spirals downward, so do the lives of the partners. Don is becoming desperate to find clients and takes a secret meeting with Heinz. But after finding out that Heinz isn’t looking to spend money in the near future, an angry Don resorts to finding other clients. Meanwhile, Roger continues to spin his web of deception about the loss of SCDP’s largest client. The partners all decide to pool their money to try and cover payroll for the next few months until they can drum up some business. Unfortunately, Pete is struggling to financially support his pregnant wife and can’t afford his portion of the pie. This causes a huge fight between the couple as he weighs the options. The partners hold a staff meeting to inform the people of the current situation. Not long after the meeting, layoffs begin.
Betty continues to use Sally’s therapy sessions as a way to get some much needed therapy of her own. Despite the fact that Sally is improving, Betty refuses to let her lessen the sessions. Sally is finally settling into life with her new family and her boy friend (not boyfriend) whom she hangs out with after school. But as soon as Betty catches her hanging with the boy, she immediately suggests that the family begin looking for a new house. Sally is clearly not happy with that decision.
After being canceled on with a possible new tobacco client, Don is fed up and on the advice of Peggy, decides to “change the subject” of the discussions going on around town. He rents out a full page ad in the New York Times saying how SCDP “broke up” with the tobacco companies after discovering a new conscience preventing them from making ads for things that kill people. The partners are furious at Don but Peggy and Megan (Don’s kinda slutty secretary) fully support his decision. As the partners meet to deliver their pooled money, Roger reveals that the American Cancer Society has asked to meet about an anti-smoking campaign, poised to bring in big money for the company. As they disperse, Pete finds out that Don payed his portion of the pool money since he couldn’t afford it. It seems Don has once again has saved the day.