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In this video tutorial, the presenter demonstrates how to reduce the file size of an Excel document without using any extra software. By utilizing a built-in feature in Microsoft Excel, the presenter is able to decrease the file size from 20.5 MB to 2.38 MB, a reduction of up to 70%. The process involves simply opening the file, selecting "Save As," changing the file type to Excel binary workbook, and saving the file in a new location. This method offers an easy and efficient way to optimize Excel file sizes without the need for additional tools.