Dilbert discovers that the office is inhabited by a race of former employees who have been "downsized" (literally shrunken down to size after they've been laid off) after finding all of his belongings used, the dry-erase markers disappearing, and X-rated websites on his computer.

On the eve of the new millennium, everyone—except Dilbert—is making New Year's plans. While assuring everyone that the company is prepared for Y2K, Dilbert discovers that the computer mainframe's main processor isn't Y2K-compatible and all the company's systems will crash if it isn't fixed.