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In this video tutorial, the presenter shows how to reduce the size of an Excel file without deleting data. They recommend saving a copy of the file before attempting to do so. The first step is to compress picture size by selecting the picture, going to picture format, selecting compress under adjust, and choosing different compress options. An alternative method is to go to file, click on more, options, advanced, and select image size and quality to discard editing data and reduce the PPI. This ensures that pictures are always compressed without the need to worry about it.