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In this video tutorial, the presenter shows how to reduce the file size of an Excel document without deleting any data. The initial file size is 1232 kb, and the first step is to compress picture sizes by selecting the picture, going to picture format, and then compressing under adjust to various options. An alternative method is shown to always have compressed pictures by going to file, clicking more, options, advanced, and selecting discard editing data and minimizing the PPI. This can help reduce the file size permanently without manual adjustments.