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This video tutorial shows how to reduce an Excel file size without deleting data by compressing picture sizes. First, select the picture, go to picture format, and compress under adjust. Different options are available for compressing, such as setting the PPI to 220 for printing. An alternative method is to go to file, then options, advanced, and select discard editing data and don't compress image file. By reducing the PPI, the picture size can be made smaller. This ensures that pictures are always compressed without manual intervention.