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In this video tutorial, Simon Says demonstrates how to reduce the size of Excel files when data is added and complexity increases. Excel file size can range from kilobytes to megabytes, which can slow down performance and make sharing difficult. One method to reduce file size is by saving the Excel file as a binary spreadsheet. To do this, navigate to file, click on save as, enter a file name and location, select Excel binary workbook option from the save as pane, and click save.