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In this video tutorial, the speaker demonstrates how to compress a Microsoft Word document to reduce its file size. This is important for faster loading times, easier sharing, and optimizing storage space. The Word file shown is around 11.1 MB and contains text and images. To compress the pictures in the document, select a picture, go to the Picture Format tab, find the Adjust section, and click on the Compress Pictures icon. Ensure that the options are set correctly in the Compression Options window, save pictures at lower resolutions, and then click on File, More, Options, and Advance to complete the process.