S4E12 · Blowing Smoke

Complete story — includes the ending

Layoffs begin in the wake of the agency's financial troubles, reducing the staff by about 50%. Pete worries about his future at the agency when he is asked to contribute $50,000 to keep the agency afloat, but Trudy blocks him from borrowing the money. After running into his old flame Midge, Don has dinner with Midge and her husband Harry, who implies that Midge had tracked Don down. Midge asks Don for money, confessing that she and her husband are heroin addicts; Don gives her $120 and leaves. Betty is angered to learn that Sally and Glen have been talking in private, and she suggests to Henry that they move to another town. 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cancel a meeting for potential business, Don has a full-page ad printed in the New York Times announcing the firm will no longer represent tobacco companies, incensing the other partners and causing Bert to resign in protest. SCDP receives a call from the American Cancer Society about launching an anti-cigarette campaign. Faye informs Don that she must resign from SCDP, because her boss wants to continue working with tobacco clients, but points out that she and Don can now date openly.