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In this video, the process of reducing the size of a PDF file without losing quality is demonstrated. The original file size of 4.1 MB is compressed successfully using a free online tool. The user is guided to choose between extreme compression for text-only files and recommended compression for files containing images. The compression process is initiated by selecting the desired option, and the download of the compressed file begins. The final result shows a reduction in size from 4.12 MB to a significantly smaller size, demonstrating the effectiveness of the compression technique.