The film revolves around Peter Gibbons, a disenchanted software company worker who despises his job at Initech. Plagued by soul-crushing mundanity and a micro-managing boss, Bill Lumbergh, Peter's only respite comes from his co-workers: the sardonic Michael Bolton, who shares nothing with his namesake except for frustration over the commonality of their name, and Samir Nagheenanajar, who constantly battles the mispronunciation of his name. Their daily grind is depicted as a Kafkaesque nightmare of pointless tasks, broken printers, and the ever-looming threat of layoffs – a cogent satire on corporate culture and office life in the late '90s.

An unexpected turn happens when Peter, seeking a way out of his existential crisis, attends a hypnotherapy session that goes awry, leaving him in a state of blissful apathy. Embraced by this new outlook, Peter begins to live life by his own rules, which leads to unexpected promotions at work and sparks a romance with Joanna, a waitress who shares Peter’s disdain for societal expectations. However, as Peter and his friends learn of imminent downsizing at Initech, they hatch a plan to embezzle a small fortune from the company by exploiting a glitch in the accounting system. Their scheme, initially seen as a harmless way to rebel against their oppressive work environment, begins to spiral out of control, threatening their careers and freedom.