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In this video tutorial, the presenter demonstrates how to reduce the file size of an Excel file from 16.4 MB to less than 50 KB. The key points include making sure the file is in tabular format with no blanks in the rows or columns. The presenter opens a sample file and saves it as an Excel file from a CSV format, resulting in a reduced file size of 3.18 MB. This process can be followed with any sample Excel file to achieve significant file size reduction.