DreamWorks Animation CEO Jeffrey Katzenberg said Tuesday that 350 of the studio’s 2,200 employees will be laid off by the end of the year. “These things are very, very difficult to do,” Katzenberg told The Hollywood Reporter. “I would say it’s the hardest thing I’ve had to do since we started DreamWorks. We’ve never had to lay anybody off. It was against our culture. But it’s the right thing for us today, and it makes DWA strong going forward.”

The announcement follows the disappointing theatrical gross of Rise of the Guardians, which has collected $302 million worldwide since opening last November. DreamWorks will take an $87 million charge for the film’s underperformance, says THR, as well as a $54 million charge to retool the upcoming Me & My Shadow.