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In this tutorial, the speaker demonstrates how to compress images in a 26 megabyte file to reduce its size. Two methods are explained: first, by selecting a picture, going to the picture format tab, and compressing it under high fidelity. Additionally, cropping areas of the picture and choosing to compress just the selected picture or all pictures are options. The second method involves clicking on file, compressing pictures, and defaulting to compressing all pictures in the file. However, the changes must be saved in order for the file size to reflect the compression.