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In this YouTube tutorial, the presenter, mg, explains a quick method to reduce the size of a GPG file or image without compromising its quality. The original file size of the picture on the desktop is 2.6 MB. The first step is to use Microsoft Office Picture Manager, which is an inbuilt option in Office. By opening the picture in Picture Manager, you can choose to auto correct the image. To further reduce the picture size, click on "Edit Pictures" and then "Compress Pictures." Select the desired document size and click "OK" to save the changes. After compressing, the file size will be reduced.