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In this tutorial, the YouTuber demonstrates how to compress large images in Photoshop. They start by importing an image of 12.5 megabytes into Photoshop. To begin compression, they advise changing the image size to 1920 by 1080 to prevent pixelation. The next step involves saving the compressed image as a JPEG file via export options, where image quality can be adjusted. Finally, viewers are encouraged to share feedback in the comments and subscribe for more videos.