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In this video tutorial, the presenter demonstrates how to reduce the size of an Excel file without deleting any data. The first step is to compress picture size by selecting the picture, going to picture format, and choosing compress under adjust. There are different options for compressing the picture format. Another method is to go to file, click on more, then options, and advanced. Scroll down to image size and quality, make sure to select discard editing data and don't compress image file. This allows for reducing the picture's PPI to make it smaller without worry.