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To reduce the file size of a 26 megabyte file, you can compress images. This can be done by selecting a picture, clicking on the picture format tab, and choosing to compress pictures at high fidelity. You can also delete cropped areas of pictures to further reduce the size. Another way is to click on file, compress pictures, and select the option to compress all pictures in the file. Once the changes are saved, the file size will be reduced.