The mechanism by which an intense electron beam can produce holes in thin films of silicon nitride has been investigated using a combination of in situ electron energy loss spectrometry and electron microscopy imaging. A brief review of electron beam interactions that lead to material loss in different materials is also presented. The loss of nitrogen and silicon decreases with decreasing beam energy and although still observable at a beam energy of 150keV ceases completely at 120keV. The linear behavior of the loss rate coupled with the energy dependency indicates that the process is primarily one of direct displacement, involving the sputtering of atoms from the back surface of the specimen with the rate controlling mechanism being the loss of nitrogen.