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Industry insiders are buzzing about massive layoffs at AT&T's media operations with the departures of top HBO and Turner execs

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Rumors are flying that AT&T will combine HBO and Turner, leading to deep staff cuts.

The shakeup has ad agencies wondering what AT&T's strategy is, with the crucial TV upfront season coming up.

There also was frustration about hearing the news through the press and not AT&T itself. One person described the atmosphere at Turner as being"like a funeral." But in this case, combining HBO and Turner would enable AT&T to unify the way it sells video to consumers. WarnerMedia is working on a direct-to-consumer streaming service that will have HBO at its core combined with other WarnerMedia content.The idea of a mashup of both companies also has some buzzing that layoffs are ahead.

"Turner has been known as being incredibly innovative, willing to take risks," a media buyer said."Is there going to be any more of a conservative approach, given AT&T heads are coming in and will Turner continue to embrace a trailblazing spirit?"

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This is probably cause of the YouTube issue.

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