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In this video tutorial, MG shows how to quickly reduce the file size of a picture without losing quality. The original file size is 2.6 MB. The process involves using Microsoft Office Picture Manager to edit and compress the picture. By following two easy steps, the size can be reduced efficiently. First, use the "Edit Pictures" and "Compress Pictures" options in Microsoft Office Picture Manager. Select the desired document size to compress the picture, and then save the changes.