Meanwhile, Oscar develops a crush on a new warehouse worker, and Andy's secret Santa gift to Erin – the 12 Days of Christmas, featuring live birds – does not go as well as planned.
Everyone seems to enjoy having Phyllis as Santa, but Michael continues to try to gain attention, prompting Jim to tell him to cease and desist.
Michael then rearranges his costume into a Jesus outfit and starts heckling and interrupting Phyllis while she's giving out the Secret Santa gifts.
David clarifies that he meant that only he, CEO Alan Brand, and a few other executives at corporate would lose their jobs, but the branches would remain because they are the only successful aspect of the company.
The office then cheers and goes back to the party, where everyone receives their Secret Santa gifts, and Michael apologizes to Phyllis for trying to overshadow her.
Additionally, Andy Bernard has asked to have Erin Hannon as his recipient for Secret Santa and decides to give her the Twelve Days of Christmas as his gift to her.