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This video tutorial demonstrates how to reduce Excel file size without deleting data. It is recommended to save a copy of the file before attempting to shrink it. The first step is to compress picture size by selecting the picture, going to picture format, and choosing compress under adjust. Different compression options are available based on the desired outcome, such as printing at 220 PPI. Alternatively, you can ensure automatic compression by going to file, more, options, advanced, and adjusting image size and quality settings to discard editing data and reduce PPI.