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In this tutorial, Simon explains how to reduce the size of Excel files as the data and complexity added to them increases. Excel files can range from kilobytes to megabytes, making them slow and difficult to share. To reduce the size of an Excel file, one method is to save it as a binary spreadsheet. This can be done by navigating to "File", clicking on "Save As", entering the file name and location, selecting the Excel binary workbook option, and clicking "Save".