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In this tutorial, the speaker explains how to reduce the file size of an Excel file from 16.4 MB to less than 50 KB. The key points are to ensure the file is in tabular format without any blank rows or columns. Converting a CSV file to an Excel file can significantly reduce the file size. For this, select 'Save As' in the file menu, change the format to Excel, and save the file. This simple step reduced the file size from 16.4 MB to 3.18 MB.