Michael gets David Wallace on the phone to complain about how "a woman has uslurped my role as Santa." Wallace says this "a very, very bad time." He tells his assistant, Stephanie to jump off the call, and Michael hears Erin offering to do the same from reception. Now that it's just the two of them, Wallace tells Michael that the company is going to be sold and cleaned out. Wallace is going to be fired, and so is Alan. It's going to be a complete housecleaning. "Goodbye, Michael," David says. Dude, way to harsh Michael's holiday bout of self-pity.

Michael does a pensive TH, having changed out of his costume and into a sweatshirt: "Earlier today this office needed a Santa. And then it needed a second Santa. And then it needed a Jesus. And now, it needs a Michael." Wow, things really are desperate.

Michael wanders more humbly into the bullpen and asks how everyone's doing. "Not great," Jim says. "You heckled Santa for an hour and a half." Okay, I stand corrected; Jim did not shut off the microphone five minutes too late. Michael blames "hurt, petulant Jesus" for ruining the party, and sends Dwight off with his debit card to get some pizzas, "discreetly" hinting that his PIN number is "YMCA," in a way that everyone gets except Dwight.

Andy tries to make excuses to Erin, and uses the oldest one: "It's the thought that counts," he says. "What were you thinking?" she responds. That one kind of stumps him. Andy THs that a gentleman would throw in the towel. "Guess what? Not gonna happen."

Michael gives a speech to the troops in the conference room, telling them that Christmas is not about Santa or Jesus, but about the workplace. Which is why they always spend it at the office, right? He goes on to say how they're all his family (in a totally inappropriate way, of course), "And I can't help but look at all of your wonderful, beautiful faces and think how could they do this to us?" Everyone seizes on that, wondering what he means, and Michael spills that David said they're going out of business. General consternation, as everyone demands more details. "We have been sold!" Michael says. Dwight dropkicks the Christmas tree. Jim, who already has his cell phone in hand, asks for clarification, pointing out, "That could mean many different things." Indeed. I worked at one place where the company coffee mugs we got at Christmas had a different logo every year. Michael argues, "It's hard for me to imagine a scenario where Meredith Palmer keeps her job and David Wallace does not." Meredith doesn't argue the point. Michael says he'll call Wallace back, which Jim thinks is impossible, since Wallace isn't picking up. But Michael has an in: he calls Wallace's kids' school.