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This video tutorial demonstrates how to reduce the size of an Excel file without deleting data. It is recommended to save a copy of the original file before attempting to do so. The first step is to compress picture sizes by selecting the picture, going to picture format, and then compressing under adjust. Different options are available for compression, such as reducing the picture format for printing. An alternative method is to go to file, click on more, then options, and advanced. From there, navigate to image size and quality, ensuring to select discard editing data and not compress image file. This allows for reducing the PPI to make the file smaller.