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This video tutorial demonstrates how to reduce the size of an Excel file without deleting any data. It is recommended to save a copy of the file before proceeding. The first step is to compress picture sizes by selecting the picture, going to picture format, and choosing compress under adjust. Different options are available for compressing picture formats based on preferences. An alternative method is to go to file, click on more, then options, and advanced. Scroll down to find image size and quality settings where editing data can be discarded and image files can be compressed. Additionally, the PPI can be reduced to make images smaller.