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This video tutorial demonstrates how to reduce the Excel file size without deleting data. It is recommended to save a copy of the Excel file before attempting to reduce its size. The initial file size is shown as 1232 KB. The first step is to compress the picture size by selecting the picture, going to picture format, and choosing compress under adjust. Different options are available for compression, such as giving 220 PPI for printing. An alternative method is to go to file, click on more, then options, followed by advanced, where image size and quality settings can be adjusted to ensure pictures are always compressed.