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In this tutorial, the presenter demonstrates how to reduce the file size of an Excel file from 16.4 MB to less than 50 KB. The first step is to ensure that the file is in tabular format with no empty cells on the top rows or right side. The file being used contains data on series, reference period, data value, status, and dollars. To reduce the file size, the presenter saves the CSV file as an Excel file, which significantly reduces the size to 3.18 MB. This process can be applied to any similar file for efficient storage and sharing.