A FUTURISTIC piece of machinery is due to arrive at Swindon’s sorting office to help sort parcels Royal Mail has confirmed.

But it remains unclear how many – if any jobs – will be at risk with the arrival of the parcel “sortation” machine, while bosses have revealed they are looking to save £500 million by 2017/18.

A spokeswoman for Royal Main confirmed the fixtures and fittings for the new machine had arrived at the Dorcan office, and the machine would be installed in the near future, although she couldn’t confirm whether this would be before or after Christmas.

She said: “The machine picks up the parcels and takes them around on a conveyor belt making the sorting of parcels more efficient.”

Currently, parcels are sorted by hand at Swindon’s sorting office, which will become only the second depot to receive the new piece of kit after one was installed in Leeds earlier this year.

There are plans for further machines elsewhere in the country at Royal Mail’s busier sorting offices.

It comes as Royal Mail announced it is extending its parcels division collection network to cover more than 11,700 Post Office branches and enquiry offices, while increasing the number of products collected from business customers at weekends.

The firm has taken a hit from the recent roll-out of Amazon's delivery network, which Royal Mail said would knock its UK parcel deliveries market by around 1 per cent to 2 per cent a year.

But the group said it was fighting back by winning new contracts with retailers and online sellers, such as John Lewis, Waterstones, House of Fraser, The Book People, The Hut Group and Asos.

The group - which last month saw its privatisation complete with the sale of the Government's final stake for just over £591 million - is also axing jobs and reducing costs across the business to help shore up its balance sheet, cutting its workforce by nearly 3,000 in the past six months alone.

It has saved around £200 million in annual costs over the last three years and is aiming to save another £500 million by 2017-18.

Royal Mail chief executive Moya Greene said: "We have delivered a resilient performance in the first half, demonstrating our ability to respond to a competitive trading environment."

She added that full-year results will be highly dependent on its "important Christmas period, for which we have extensive preparations in place".

The Royal Mail privatisation in total raised £3.3 billion for the Government, with proceeds used to pay down the national debt.