Private space company Sierra Space has laid off several hundred employees and contractors this week, with around 165 employees and an unspecified number of contractors affected. The company, recently valued at over $5 billion, shipped its first Dream Chaser spaceplane for testing at NASA’s Armstrong facility in Ohio before the layoffs began. Sierra Space will now focus on the operations phase of Dream Chaser’s first mission and classified national security work, including adding nearly 150 employees with security clearances. The layoffs come after Sierra Space raised almost $300 million in funding two months ago.