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In order to reduce the file size of a 26 megabyte file, you can compress images in two ways. The first method is to select a picture, go to the picture format tab, compress pictures, and choose the desired option. You can also delete cropped areas of pictures to further reduce the size. The second method is to click on file, compress pictures, and the default option is to compress all pictures in the file. After compressing, remember to save the changes to see the reduction in file size.