JERUSALEM, April 7 (Xinhua) — The Israeli government said on Thursday that it has reached a deal with the workers of the state-owned Israel Post on the company’s recovery plan and privatization process.

The recovery plan, which came more than three months after the government announced full privatization of Israel Post, includes layoffs and retirements of some 1,600 workers with fair compensation, the Ministry of Finance and the Ministry of Communications said in a joint statement.

The plan also includes downsizing and cutting payroll expenses, speeding up transition to digital services, and improving parcels collection services, among others.

The state will lend Israel Post 1.7 billion new shekels (about 527 million U.S. dollars) while the company will undertake financing 450 million new shekels through assets sales, Israel’s financial website Globes reported Thursday.

Some assets would remain under government ownership to preserve the public interest, according to the statement.

In December 2021, Communications Minister Yoaz Hendel said 100 percent of the state’s holding in the company will be sold, with 40 percent of corporate shares to be floated initially on the Tel Aviv Stock Exchange.