<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM XEROX CORPORATION'S 9-30-00 FINANCIAL STATEMENTS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000

                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-2000
<PERIOD-END>                               SEP-30-2000
<CASH>                                             154
<SECURITIES>                                         0
<RECEIVABLES>                                    16057
<ALLOWANCES>                                       571
<INVENTORY>                                       3108
<CURRENT-ASSETS>                                 12145
<PP&E>                                            5499
<DEPRECIATION>                                    3000
<TOTAL-ASSETS>                                   29283
<CURRENT-LIABILITIES>                             7522
<BONDS>                                          17197
<PREFERRED-MANDATORY>                              638
<PREFERRED>                                        659
<COMMON>                                           669
<OTHER-SE>                                        3382
<TOTAL-LIABILITY-AND-EQUITY>                     29283
<SALES>                                           7192
<TOTAL-REVENUES>                                 13581
<CGS>                                             4266
<TOTAL-COSTS>                                     8287
<OTHER-EXPENSES>                                  5679
<LOSS-PROVISION>                                   316
<INTEREST-EXPENSE>                                 739
<INCOME-PRETAX>                                  (385)
<INCOME-TAX>                                      (93)
<INCOME-CONTINUING>                              (265)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     (265)
<EPS-BASIC>                                     (0.44)
<EPS-DILUTED>                                   (0.44)