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In the tutorial, the speaker demonstrates how to reduce the size of an Excel file from 16.4 mb to less than 50 kb. They emphasize that the file must be in a tabular format with rows and columns and no empty spaces at the top or right. They show how converting a CSV file to an Excel file can significantly reduce the size, as demonstrated with a sample file that went from 16.4 mb to 3.18 mb. The process involves saving the file as an Excel format under the "Save As" option.
