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In this tutorial, the presenter demonstrates how to reduce an Excel file size without using any software. They show that by simply saving the file as an Excel binary workbook, the file size can be reduced significantly. The original file size was 20.5 MB and after saving it in the specified format, the size reduced to 2.38 MB, which is a reduction of over 70%. This method does not require any additional software and is a built-in feature in Microsoft Excel.