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In this YouTube tutorial, the presenter gives a step-by-step guide on how to reduce the size of a GPG file or image without losing any quality. The original file size shown is 2.6 MB. The first method mentioned is using Microsoft Office Picture Manager, which can be accessed by right-clicking on the image and selecting "Open with." From there, you can choose to auto-correct the picture or proceed to the next step. To reduce the picture size, click on "Edit Pictures" and then "Compress Pictures." Within the compression options, choose "Document." After compressing, the size of the picture will decrease. Finally, save the image.