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This video tutorial demonstrates how to reduce the size of an Excel file without deleting any data. Before making any changes, it is advisable to save a copy of the file. The original file size is 1232 kb. To reduce the file size, the first step is to compress the picture size by selecting the picture, going to picture format, and choosing compress under adjust. Different compression options are available, such as reducing the picture format to 220 ppi for better printing results. An alternative method is to ensure that all pictures are always compressed by going to file, then options, advanced, and selecting discard editing data and not compressing image files. This ensures smaller file sizes without worrying about individual picture compression settings.