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This video tutorial demonstrates how to reduce the size of an Excel file without deleting data. It is recommended to save a copy of the file before proceeding. The first step is to compress picture sizes by selecting the picture, going to picture format, and then selecting compress under adjust. Different options for compressing are available, such as selecting a specific PPI for printing. An alternative method is to go to file, click on more, then options, and finally advanced. Scroll down to find image size and quality settings where you can choose to discard editing data and not compress image files. This will ensure that pictures are always compressed without manual intervention.