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In this tutorial, the instructor demonstrates how to compress large images in Photoshop. They start by importing an image of 12.5 megabytes and adjusting the image size to 1920 by 1080 to prevent pixelation. The image is then saved as a JPEG file through the "Save for Web" option, where the image quality can be adjusted. The final step shows the reduced size of the compressed image. Viewers are encouraged to share feedback in the comments section and subscribe for more videos.