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This video tutorial explains how to reduce the file size of an Excel document without deleting any data. The first step is to compress picture sizes by selecting the picture, going to picture format, and selecting compress under adjust. Different compression options are available, such as reducing the picture format for printing. An alternative method is to set a default compression setting by going to file, clicking on more, then options, and advanced. Check image size and quality settings to ensure editing data is discarded and image files are not compressed. This helps reduce file size without losing image quality.