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In this video tutorial, the creator discusses how to separate a list of names into first and last names in Excel. By utilizing the Text to Columns feature under the Data tab, users can easily split the names based on the space between them. This allows for sorting by last name and reformatting the list with last name followed by a comma and then the first name. To achieve this, simply highlight the names, access Text to Columns, and select delimited to automatically separate the names.