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In this video, the presenter demonstrates how to reduce the size of an Excel file without deleting any data. The first step is to compress picture sizes by selecting the picture, going to picture format, and choosing compress under adjust. Different options are available for compressing picture formats. An alternative method is to go to file, click on more, then options, and finally advanced. In the image size and quality section, making sure to select discard editing data and not compress image file can help reduce file size.