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This tutorial demonstrates how to reduce an Excel file size without deleting data. It is recommended to save a copy of the file before attempting to do so. The first step is to compress the picture size by selecting the picture, going to picture format, clicking on compress under adjust, and choosing the desired options for compression. An alternative method is also discussed, where you can ensure that pictures are always automatically compressed by going to file, more options, advanced, and adjusting image size and quality settings. This can help reduce file size without manual intervention.