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In this video tutorial, the speaker demonstrates how to reduce Excel file size without using any software. They show that there is a built-in feature in Microsoft Excel that allows you to reduce the file size significantly. They start with a 20.5 MB file and show how to convert it up to 70% or 60% smaller by saving the file as an Excel binary workbook. After saving, the file size is reduced to 2.38 MB, showcasing a significant decrease in size without the need for additional software or hard work.