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This video tutorial demonstrates how to reduce the size of an Excel file without deleting data. It is recommended to save a copy of the Excel file before attempting to reduce its size. The first step involves compressing picture sizes in Excel by selecting the picture, going to picture format, and choosing the compress option under adjust. Different compression options are available, such as reducing picture format to a specific PPI. An alternative method is to set a default compression for all images by going to file, clicking on more, selecting options, and then advanced. In the image size and quality section, ensure to select discard editing data and do not compress image file. Additionally, reducing the PPI can help make the file smaller.