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This video tutorial demonstrates how to reduce the size of an Excel file without deleting data. It is important to save a copy of the file before proceeding. The first step is to compress picture size by selecting the picture, going to picture format, and choosing compress under adjust. There are different options available for compressing the picture format based on your needs. An alternative method is to go to file, then options, advanced, and adjust the image size and quality settings to ensure that pictures are always compressed without manual intervention.