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This video tutorial demonstrates how to reduce the size of an Excel file without deleting any data. It is important to save a copy of the file before beginning the process. The first step is to compress the picture size in Excel by selecting the picture, going to Picture Format, and selecting Compress under Adjust. Different options are available for compression, such as reducing the picture format. An alternative method to always compress pictures is to go to File, then Options, then Advanced, and select image size and quality. It is recommended to discard editing data and not compress the image file to reduce file size.