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This video tutorial demonstrates how to reduce the size of an Excel file without deleting data. It is important to save a copy of the file before proceeding. The first step involves compressing picture size in Excel by selecting the picture, going to picture format, and choosing the compress option. Different compression options are available, such as selecting 220 ppi for printing. An alternative method is to go to file, click on more, then options, and finally advanced. In the image size and quality section, select discard editing data and choose not to compress image files. Adjusting the ppi can further reduce file size.