Don runs into his old flame Midge and learns her life has taken a disturbing turn. After executives from Philip Morris cancel a meeting for potential business, Don has a full-page ad printed in the New York Times announcing the firm will no longer represent tobacco companies, incensing the other partners and causing Bert Cooper to resign in protest.

Sally is upset when Betty and Henry discuss moving the Francis family to nearby Rye. Layoffs begin in the wake of the agency's financial troubles, reducing the staff by about half. Show less