Abe is getting dressed, and he's having to put his beach clothes back on, which is maybe not quite on the level of shame of re-donning a tux but is still not exactly covering yourself in glory. Not that he has to worry about that yet, because after a few flirty words and a disclaimer from Peggy that she's "not usually like this," the clothes are back off and they are Doing It again. I'm guessing all the sand or whatever it is has worked its way out by now.
Bertram, Pete, and Don are having pastries and coffee in Don's office when Roger calls to tell them it's done -- since Garner Sr. lost it, the board has taken over and there's no point in talking to them. It's all basically what Garner Jr. told him last episode, but Roger is pretending that he just walked out of their offices in North Carolina when he's actually in a New York hotel. Bertram tells him their clients need to hear this from them, and Roger replies that he shouldn't wait for him to get back. Oh, Roger. Even a trace of leadership at this point would make such a difference, you know?
The next morning, a full staff meeting has been convened, and after the Creative guys engage in some erroneous speculation about the gathering's purpose, Bertram announces the news about American Tobacco, prompting predictable whispering and wincing among the crowd. Bertram then cedes the floor to Don, who first off tells everyone that Pete and Ken are the only ones authorized to break the news to their other clients, although, and this is where Roger's lack of backbone really hurts, it's likely that many of them know about it already thanks to the delay between when the firing actually happened and when they think it did. Don goes on that up until now, they've had a good year and have gained far more accounts than they've lost thanks to the quality of their work, so they're going not just to survive but to make lemonade out of lemons or some shit. I mean, it sounded good when he said it but let's not pretend this is good news, right?
Don then introduces some older guy, "Joe," who's apparently the firm's accountant even though we've never seen him before, although I suppose it's possible he doesn't work in-house. Joe assures everyone that the only small change is that any expenses out of the ordinary will have to be approved by either him, Pryce, or Joan, and honestly if that wasn't the case already Lucky Strike was doing them a favor on that front. Joe then asks if anyone has any questions, and Danny raises his hand, but he's so short that from the front Joe can't see him, so he hilariously moves on. I mean, jokes about Danny Strong's height are to be used sparingly, but the show is consistently smart with material such as that. By the way, Peggy has sashayed in late, but she quickly loses her post-coital glow when she hears the news, and then when the meeting breaks up Don calls the entire Creative team into his office...