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In this tutorial, Simon explains how to reduce the size of Excel files as they increase in complexity and data is added. Excel file sizes can range from kilobytes to megabytes, which can slow down processing and make sharing difficult. One way to reduce file size is by saving the file as a binary spreadsheet format, which can be done by navigating to the "save as" option and selecting the Excel binary workbook option. This will help to make the Excel file more manageable and easier to share.