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This video tutorial demonstrates how to reduce the size of an Excel file without deleting data. It is important to save a copy of the file before making any changes. The first step is to compress picture sizes by selecting the picture, going to picture format, and choosing the compress option. Different compression options are available depending on the desired output. An alternative method is to go to File, click on More, then Options, and Advanced. Scroll down to Image Size and Quality, where you can choose to discard editing data and not compress image files to reduce file size.