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In this tutorial, Simon explains how to reduce the size of Excel files as the data and complexity increase, resulting in larger file sizes. Large Excel files containing a vast amount of data can slow down and become difficult to share. To reduce the file size, one method is to save the Excel file as a binary spreadsheet. Simply navigate to File, Save As, enter the file name and location, and select the Excel binary workbook option. This will help decrease the size of the Excel file for better performance and easier sharing.