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This video tutorial demonstrates how to reduce the size of an Excel file without deleting data. It is important to save a copy of the file before attempting to do so. The first step is to compress picture sizes in Excel by selecting the picture, going to Picture Format, and choosing the compress option under adjust. Different compression options are available, such as choosing 220 ppi for printing. An alternative method is to go to File, click on More, then Options, and finally Advanced. Scroll down to Image Size and Quality, select Discard Editing Data, and choose not to compress image files. This will ensure that pictures are always compressed without manual intervention.