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In this video tutorial, the presenter demonstrates how to reduce the size of an Excel file without deleting any data. The first step is to compress picture sizes by selecting the picture, going to picture format, and selecting compress under adjust. Different options are available for compressing the picture format. An alternative method is to go to file, click on more, then options, advanced, and scroll down to image size and quality. Ensure to select discard editing data and don't compress image file to reduce file size.