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The House of Mouse staff find that the club is 1% over its budget and one of the crew will have to be fired. Minnie says that they'll have to fire someone "who doesn't get their work done, makes mistakes, asks for time off, and breaks things." Goofy then comes in, saying that he didn't finish setting the tables, accidentally locked the front door, broke Mickey's TV, and wants to take every other week off. Right after he leaves, telling his friends that he loves working with them, Donald says that Goofy's the one they should fire, but Mickey does not want to fire their friend.
While the musical guests for the day (Toot, Whistle, Plunk and Boom) perform, Donald listens to a self-help tape about firing one's friend and then goes looking for Goofy, carrying a literal pink slip. Mickey catches him carrying it and says they'll find some other way to save the budget. Donald goes and gives Goofy the pink slip anyway, so Mickey announces on stage that he's quitting his position as the club's host. He names Goofy as his replacement, saying that it was Donald's idea, much to the duck's dismay.
Goofy takes over the hosting duties and, after showing one of his cartoons, says he wants to thank Donald for recommending him for the position, which he does by singing Donald's theme song. Donald, seeing this, is touched and walks up to Goofy, saying he's sorry he tried to fire him earlier. Realizing that Donald was trying to fire him, Goofy becomes angry and the two of them start fighting while the last cartoon is shown. Meanwhile, Minnie informs Mickey that they made a mistake and the club was actually 1% under its budget. Mickey relays this information to Donald and Goofy, saying that they can actually hire one person back, so Goofy returns the hosting duties to Mickey.
- The Horned King makes an appearance in this episode.