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This video tutorial demonstrates how to reduce Excel file size without deleting data. It is recommended to save a copy of the file before making changes. The first step is to compress picture size by selecting the picture, going to picture format, and choosing compress under adjust. Different options are available for compressing picture formats, such as selecting 220 PPI for printing. An alternative method is to go to file, click on more, options, advanced, and then adjust image size and quality settings to ensure images are always compressed.