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In this YouTube tutorial, the host shows how to quickly reduce the file size of a GPG image. The original file is 2.6 MB. The process involves using Microsoft Office Picture Manager to compress the image size without losing quality. By following two easy steps - editing pictures and compressing them, users can reduce the file size efficiently. This can be done by clicking on the image in Office and selecting the compress pictures option. After compressing, the file size will reduce significantly without compromising quality.