While recuperating from surgery, Arthur is upset with changes in the show made by substitute producer Jonathan Littman, even though the new head of Late Night Programming, Sam Fitsgerald, tells Larry that the network is happy with the new look. As Sam congratulates Jonathan for his pointed critique of the show, Larry asks that Jon's memo be kept from his staff and urges his network boss to go slow with any changes. However, when Phil steals a copy of the memo, panic breaks out among the staff as they begin to fear for their jobs. Although Larry tries to reassure his staff, Hank is unconvinced that his job is secure and worries about Jonathan's recommending a younger announcer. Though Larry agrees to let the situation play itself out on the condition that the memo be kept from his producer, when Arthur receives a copy at home, he makes a premature return to the office. Meanwhile, Hank decides to cultivate a younger image by getting an earring. Finding Arthur waiting for him, Hank gets drunk and the pair storms into Larry's office to protest. When Arthur announces his decision to quit, Larry asks Jonathan to reassure Arthur that he is not after his job, but is taken aback by Littman's stated intention of becoming the new producer. Admitting that the memo was a mistake, Jonathan then discloses another one criticizing Larry's role on the show, too. Insisting he wouldn't do the show without him, Larry persuades Arthur to return to work, but is forced to do some explaining when the producer of another late show suddenly drops by for lunch.
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