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In this video tutorial, the speaker explains how to reduce the size of a Microsoft Word file that contains a lot of pictures. This can be helpful if the file is too large to email or use for other purposes. By adjusting the image size and quality settings in Word, you can lower the file size without sacrificing too much image quality, which is useful if you don't need high resolution. The default image quality setting is 220 ppi, but you can adjust it based on your needs. This process can help reduce the file size without compromising usability.