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In this video tutorial, Simon shows how to reduce the size of Excel files as they grow in complexity. Excel files can range from kilobytes to megabytes, with larger files being slower and harder to share. One way to reduce file size is by saving it as a binary spreadsheet. To do this, navigate to File, click on Save As, enter a file name and location, and select the Excel binary workbook option. This will save the file in a smaller, more efficient format.