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In this tutorial, Simon Says demonstrates how to reduce the size of Excel files as the data and complexity increase. Excel files can range from kilobytes to megabytes, making them slow and difficult to share. One way to reduce the file size is by saving it as a binary spreadsheet. To do this, navigate to the file menu, click on save as, enter the file name and location, and select the Excel binary workbook option. This will decrease the size of the Excel file.