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This video tutorial demonstrates how to compress a Microsoft Word document to reduce file size, improving loading times, sharing, and storage space. The 11.1MB Word file with text and images is used as an example. To make the file smaller, select a picture, go to the picture format tab, and click on compress pictures icon. Ensure "apply only to this picture" is unchecked and "delete cropped areas" is checked. Choose Default Resolution and click okay. Save pictures at lower resolutions by accessing the advanced options in the file menu.