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In this tutorial, the presenter demonstrates how to reduce the file size of an Excel document without deleting any data. They recommend saving a copy of the file before attempting to do so. The initial file size is 1232 kb, and after saving a copy, both files remain the same size. The first step is to compress picture sizes by selecting the picture, going to picture format, and choosing to compress under adjust. Various options are available for compressing the picture format, such as selecting a specific PPI for printing. An alternative method is to go to file, options, advanced, and selecting image size and quality to ensure that pictures are always compressed. This can be done by selecting discard editing data and not compressing image files, along with reducing PPI to make images smaller.