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In this video tutorial, the creator demonstrates how to quickly reduce the file size of a picture without losing quality. They show two easy steps to achieve this. The first step is to use Microsoft Office Picture Manager, where you can click on the picture and select the option to compress it. By selecting the document option, you can drastically reduce the file size without compromising the quality of the picture. After compressing the picture, you can save it with a smaller file size while maintaining the original quality.