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In this video tutorial on YouTube, the presenter demonstrates how to reduce the file size of an Excel file without using any additional software. By utilizing a built-in feature in Microsoft Excel, the presenter shows how a file originally at 20.5 MB can be reduced by up to 70% or 60%. The process involves opening the file, saving it as a binary workbook, and then saving it in a new location. The presenter successfully reduces the file size from 30.5 MB to 2.38 MB, highlighting the effectiveness of this method.