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This video tutorial demonstrates how to compress a Microsoft Word document to reduce its file size. Smaller file sizes lead to faster loading times, easier sharing, and optimized storage space. The initial Word file is shown to be around 11.1 MB with text and images. To compress pictures, select an image, go to the picture format tab, click on the compress pictures icon, and ensure the correct options are selected. Save pictures at a lower resolution for further size reduction. Additional steps include accessing options via the file tab and selecting advanced settings.