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In this video tutorial, the presenter demonstrates how to reduce Excel file size without the use of any software. By using a built-in feature in Microsoft Excel, the file size can be reduced by up to 70%. The process involves opening the file, saving it as an excel binary workbook, and selecting the output location. By following these steps, the file size can be significantly reduced, as shown in the example where a file originally sized at 20.5 MB was reduced to 2.38 MB.