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Mike demonstrates how to easily compress a folder of photos on Windows computers without the need for special software. He explains that the process only takes two or three minutes and has been successful for him multiple times. By creating a new folder and selecting all the pictures in the original folder, users can quickly compress their photos. This method may not work on Mac computers, as Mike has not tested it on a Mac. By following these steps, users can effectively reduce the file size of their photo folders.