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This video tutorial provides a step-by-step guide on how to reduce the size of an Excel file without deleting any data. The first step is to compress picture sizes in Excel by selecting the picture, going to picture format, selecting compress under adjust, and choosing the desired compression option. Alternatively, you can go to file, click on more, then options, followed by advanced, to ensure pictures are always compressed. By setting the image size and quality options, you can reduce file size without losing any data.