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In this tutorial, Simon explains how to reduce the size of Excel files as they become larger with more data added. Large files can be slow and difficult to share, so it's important to reduce their size. One method is to save the file as a binary spreadsheet, which can be done by navigating to file, clicking on save as, entering a file name and location, selecting the Excel binary workbook option, and saving the file. This will help decrease the size of the Excel file.