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In this video tutorial, the presenter demonstrates how to reduce the file size of an Excel file from around 16.4 MB to less than 50 KB. The key points covered include ensuring the file is in tabular format without blank rows or columns, converting a CSV file to Excel format, and achieving a significant decrease in file size. The presenter also provides instructions on saving the file in Excel format, resulting in a reduced file size of 3.18 MB. This process can be applied to any sample file downloaded from a website.