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This video tutorial demonstrates how to reduce the size of an Excel file without deleting data. It is important to save a copy of the original file before attempting to do so. The first step is to compress picture sizes by selecting the picture, going to picture format, and selecting compress under adjust. Different options are available for compressing the picture format, such as selecting the appropriate pixels per inch (ppi) for printing. An alternative method is to go to file, click on more, then options, and advanced. Scroll down to image size and quality, and ensure "discard editing data" is selected and "don't compress image file" is unchecked. This will automatically compress images in the future without the need for manual adjustments.