<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM XEROX
CORPORATION'S JUNE 30, 1998 FINANCIAL STATEMENTS AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               JUN-30-1998
<CASH>                                             142
<SECURITIES>                                         0
<RECEIVABLES>                                   15,581
<ALLOWANCES>                                       478
<INVENTORY>                                      3,168
<CURRENT-ASSETS>                                11,582
<PP&E>                                           5,159
<DEPRECIATION>                                   2,912
<TOTAL-ASSETS>                                  28,937
<CURRENT-LIABILITIES>                            8,353
<BONDS>                                         14,556
<PREFERRED-MANDATORY>                              637
<PREFERRED>                                        699
<COMMON>                                           330
<OTHER-SE>                                       3,640
<TOTAL-LIABILITY-AND-EQUITY>                    28,937
<SALES>                                          4,795
<TOTAL-REVENUES>                                 9,046
<CGS>                                            2,667
<TOTAL-COSTS>                                    5,062
<OTHER-EXPENSES>                                 4,638
<LOSS-PROVISION>                                   111
<INTEREST-EXPENSE>                                 356
<INCOME-PRETAX>                                  (654)
<INCOME-TAX>                                     (239)
<INCOME-CONTINUING>                              (410)
<DISCONTINUED>                                   (190)
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     (600)
<EPS-PRIMARY>                                   (1.90)
<EPS-DILUTED>                                   (1.90)