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The tutorial explains how to compress image file size in Microsoft Word to save storage space. To begin, launch Word and open the document with the images. Click on the image, go to the picture format tab, and select the compressed pictures icon. In the window that opens, adjust settings to apply changes to all pictures or just the selected one. Additionally, you can choose to delete cropped areas. This process can make it easier to understand complex processes by including images without taking up too much storage space.