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In this tutorial, the presenter demonstrates how to add or remove a watermark in Word 2013. To remove a watermark, users should navigate to the Design tab in the ribbon and locate the Page Background section. By clicking on the watermark dropdown menu, the existing watermark can be removed. Users can also choose from prefilled watermark options like "Confidential," "Draft," "Sample," or "Do Not Copy." Additionally, there's an option to create a custom watermark using text or images, which allows for changes in font and color. Once customized, clicking "Apply" will display the new watermark, which can be tailored to fit specific needs or regulations.