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This video tutorial demonstrates how to reduce excel file size without deleting data by compressing pictures. It is recommended to save a copy of the file before attempting any changes. Compressing pictures in excel can be done by selecting the picture, going to picture format, then compressing under adjust. Different options are available for compression, such as reducing picture format for printing. An alternative method is to go to file, click on more, options, advanced, and adjust image size and quality settings to ensure pictures are always compressed. This can help reduce file size without losing image quality.