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In this video tutorial, the presenter shares a simple trick to reduce the size of an Excel file. They suggest removing conditional formatting, performing paste special values on unnecessary formulas, and clearing formatting like borders, cell color, and text style. They also recommend unhiding hidden columns, rows, and sheets, then deleting them to reduce file size. The presenter demonstrates creating an Excel file, inputting row data, copying cells, pasting them on the entire column, and saving the file. By changing the file format from Excel workbook to Excel binary workbook, the file size can be reduced effectively.