In the past two years, Amway's worldwide sales have plummeted, from almost $7 billion (at projected retail, a bogus number) to about $5 billion, or about 40%.

In 1998, about 700 North American employees were laid off or given early retirement packages. When the company announced some major restructuring last week, they also paved the way for a new round of layoffs.

In the restructured company, Dick DeVos and Steve Van Andel will remain President and Chairman of the Board, respectively. However, the rest of the business is now divided into three parts.

Doug DeVos will head the "core" business unit, which will focus on the MLM distribution system and Quixtar. Dave Van Andel will head the "innovations" business unit. Sr. VP Al Koop, an Amway fixture since 1965, will head the "operations" unit. Conspicuously absent from the roster are former Quixtar spokesman Ken MacDonald and legal beagle Craig Muerlin.

Amway will also close its regional distribution center in California. It is the first such closing for the company in North America.

Janice Jacobson, a project manager for Amway, admits that "Morale has been difficult and has been low for a while."