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In this video tutorial, the process of reducing the size of a PDF file without losing quality is demonstrated. The PDF file size of 4.1 MB is compressed using a free online tool. Users can choose between extreme compression, recommended compression for files with images, and less compression for text-only files. After selecting the compression level and compressing the PDF, the file is downloaded with a 76% reduction in size, from 4.12 MB to a smaller size.