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In this video tutorial, the presenter demonstrates how to reduce the size of an Excel file without deleting any data. It is important to save a copy of the file before attempting this. 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 compressing the picture format, such as giving it 220 ppi for printing. An alternative method is to go to file, click on more, then options, and advanced. Under image size and quality, select discard editing data and don't compress image file. This allows for reducing the ppi to make it smaller.