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In this video tutorial, the process of reducing the size of a PDF file without compromising its quality is demonstrated. The original file size of 4.1 MB is compressed using a free tool accessed through a provided link. Users are given the option to choose between extreme compression, recommended compression for files containing images, or less compression for text-only files. The compressed file is downloaded, resulting in a 76% size reduction from 4.12 MB to a smaller size.