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In this video tutorial, the presenter demonstrates how to reduce the size of an Excel file without using any software. They show that by utilizing a built-in feature in Microsoft Excel, it is possible to significantly reduce the file size, even up to 70%. By simply opening the file and saving it in a different format, such as Excel binary workbook, the file size can be reduced from 20.5 MB to 2.38 MB. This method provides a simple and effective way to decrease the size of Excel files without the need for additional software or complex processes.