David Brent, manager of the Slough branch of Wernham Hogg paper merchants, is told that it might be closed down. He makes the rash promise of no redundancies.

Donna, on work experience, has her first day dominated by a rude picture of her boss that has been emailed around the office. David fails to appreciate the joke, and puts Gareth on the case.

It's Tim's 30th birthday, and he receives a card from Dawn and an unusual inflatable gift from Lee. Brent and Finchy take on Tim and Ricky at the annual quiz night, but things get ugly and Tim ends up losing his shoe.

To fend off the increasing staff disillusionment, a training day has been scheduled. Elsewhere, Dawn's engagement to Lee is on the rocks, and Tim begins to think that he may at last have a chance with her.

David interviews for a secretary and chooses blonde Karen. His efforts to impress end badly when he accidentally headbutts her. Meanwhile, Donna's late arrival at work sparks the rumour that she is sleeping with a colleague.

David Brent is told that the Slough branch is to be merged. There will be job losses, but his position is safe. He will run the new combined branch.