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In this tutorial, the instructor demonstrates how to compress large images in Photoshop. They start by importing a 12.5 MB image and adjusting the image size to prevent pixelation. The process involves going to Image > Image Size and changing the width to 1920. To save the compressed image, go to File > Export > Save for Web and select JPEG as the file format. Image quality can be adjusted before saving. Viewers are encouraged to share feedback in the comments section and subscribe for more videos like this.