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In this video tutorial, the presenter demonstrates how to reduce the size of an Excel file without using any software. They show how to do this by using a built-in feature in Microsoft Excel. The original file size was 20.5 MB, and after following the steps shown in the video, the file size was reduced to 2.38 MB, which is a significant decrease of up to 70%. The process involves saving the file in a different format, specifically as an Excel binary workbook.