A few hundred will be told their services are no longer necessary.

Morgan Stanley will lay off 200 to 300 trainees and lower-producing financial advisers in its brokerage joint venture, according to a person familiar with the situation...Trainees likely to be laid off include brokers who have worked at the firm for six to 36 months who had $25,000 or less in annual production. Lower producers who could be let go include five-year industry veterans who have been with Morgan Stanley for more than a year and have an annual production under $75,000.

There is, however, some hope.

"If someone is showing growth potential, there is discretion involved," the person said.