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The video tutorial demonstrates a simple trick to reduce the size of an Excel file by performing ordinary actions such as removing conditional formatting, using paste special values, clearing formatting, unhiding hidden columns/rows/sheets, and deleting unnecessary data. The uploader creates a sample Excel file, inputs data in a row, copies and pastes it in an entire column, and then saves the file. The initial file size is 5.42MB. To further reduce the file size, the uploader changes the file format from Excel workbook to Excel binary workbook.