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In this tutorial, the instructor demonstrates how to compress large images in Photoshop. They start by importing a 12.5 MB image into Photoshop and recommend setting the image width to 1920 to prevent pixelation. After adjusting the image size, they show how to save the image using the "Save for Web" feature. By selecting JPEG as the file format and adjusting the image quality, you can effectively compress the image. The instructor encourages viewers to share their feedback in the comments and subscribe for more tutorials.