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This video tutorial demonstrates how to reduce the size of an Excel file without deleting data. It is recommended to save a copy of the file before attempting this process. The first step is to compress picture size by selecting the picture, going to picture format, and selecting compress under adjust. Different options are available for compressing the picture format, such as setting the ppi for printing. An alternative method is to go to file, click on more, then options, and advanced to access image size and quality settings. It is advised to discard editing data and not compress image files to reduce file size.