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In this tutorial video, MG demonstrates how to quickly reduce the size of a GPG file or image. The original file size is 2.6 MB, and MG shows two easy steps to reduce the size without losing quality. The first step involves using Microsoft Office Picture Manager, where you can click on the picture and select the option to compress it. By selecting the document option and compressing the picture, you can reduce the size significantly. After compressing, save the picture to finalize the process.