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This video tutorial shows how to reduce the size of an Excel file without deleting data. It is important to save a copy of the file before attempting to do this. The first step is to compress picture size by selecting the picture, going to picture format, and selecting compress under adjust. Different options are available to reduce the picture format, such as setting the PPI to 220 for printing. An alternative method is to go to file, then options, then advanced, and adjust image size and quality settings. This allows for consistent compression of pictures without manual intervention.