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In this video tutorial from Tiny Technical Tutorials, the narrator demonstrates how to compress images in Microsoft Word. They start with a document containing Lorem Ipsum text and multiple images, showing that the file size is 2.8 megabytes. They explain that large files can be difficult to email and show how to compress images to reduce file size. Steps include selecting an image, going to Picture Format, and choosing the compress pictures option. This process can help reduce the size of documents with many images, making them more manageable for sharing.