<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM XEROX CORPORATION'S 6-30-00 FINANCIAL STATEMENTS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.

<MULTIPLIER> 1,000,000

                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-2000
<PERIOD-END>                               JUN-30-2000
<CASH>                                             120
<SECURITIES>                                         0
<RECEIVABLES>                                   16,743
<ALLOWANCES>                                       500
<INVENTORY>                                      3,289
<CURRENT-ASSETS>                                12,901
<PP&E>                                           5,490
<DEPRECIATION>                                   2,987
<TOTAL-ASSETS>                                  30,314
<CURRENT-LIABILITIES>                            8,059
<BONDS>                                         17,557
<PREFERRED-MANDATORY>                              638
<PREFERRED>                                        661
<COMMON>                                           668
<OTHER-SE>                                       3,764
<TOTAL-LIABILITY-AND-EQUITY>                    30,314
<SALES>                                          4,818
<TOTAL-REVENUES>                                 9,119
<CGS>                                            2,758
<TOTAL-COSTS>                                    5,463
<OTHER-EXPENSES>                                 3,846
<LOSS-PROVISION>                                   178
<INTEREST-EXPENSE>                                 474
<INCOME-PRETAX>                                  (190)
<INCOME-TAX>                                      (65)
<INCOME-CONTINUING>                               (98)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                      (98)
<EPS-BASIC>                                     (0.17)
<EPS-DILUTED>                                   (0.17)