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In this tutorial, the process of compressing images in a file to reduce its size is demonstrated. The tutorial explains two methods to compress images: the first method involves selecting a picture, going to the picture format tab, selecting compress pictures, and choosing an option. The second method involves clicking on file, then compress pictures, where options are automatically greyed out if no picture is selected. The default option is to compress all pictures in the file. After compressing the images, the file size will decrease, but changes need to be saved for the reduction to take effect.