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In this tutorial, the instructor shares a simple trick to reduce the size of an Excel file. They recommend removing conditional formatting, performing paste special values on unnecessary formulas, clearing formatting like borders, cell colors, and text styles, and unhiding hidden columns, rows, and sheets. By following these actions, you can reduce the size of your Excel file. The instructor demonstrates creating an Excel file, inputting row data, copying cells, pasting on entire columns, and saving the file. After saving, the file size is shown to be 5.42 MB. To further reduce the size, they suggest changing the file format to Excel binary workbook.