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In this video tutorial, Rajeev demonstrates how to reduce the file size of an Excel document containing macros and formulas by saving it in dot XLSB format instead of the default XML format. By doing this, the file size is significantly reduced, making it easier to manage and share. Rajeev advises viewers to follow this step when working with Excel files that have a lot of macros or formulas. If you found this video helpful, don't forget to subscribe and share the channel.