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In this tutorial, the presenter demonstrates how to compress images in Microsoft Word to reduce file size. They show a document with Lorem Ipsum text and multiple photos, highlighting the large file size of 2.8 megabytes. By compressing the images, the file size can be significantly reduced, making it easier to share via email. The process involves selecting an image, going to picture format, and choosing the compress pictures option to decrease the file size. This method can be useful for documents with numerous images that could reach 20-30 megabytes in size.