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This video tutorial demonstrates how to reduce the size of an Excel file without deleting any data. It is important to save a copy of the file before proceeding. The first step is to compress picture sizes in Excel by selecting the picture, going to picture format, and then compressing under adjust. Different compression options are available such as reducing picture format for printing. An alternative method is to go to file, click on more, then options, and finally advanced to adjust image size and quality settings to ensure pictures are always compressed without worrying about it.