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To reduce file size in Premiere Pro, click on the export button and set the file location and name. Change the format to h265 for higher quality in the same size. Set the presets to custom, click on Match source in the video tab, enable two boxes, and select Hardware encoding if available. Choose high performance, bitrate encoding to vbr1 pass for small size and high quality. Reduce the bitrate for smaller file size while maintaining quality by adjusting the number in the corner.