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Left-click the imported image and select Picture Tools > Format > Compress Pictures from the top menu.

In the Compress Pictures dialog box, select either 'Selected pictures' or 'All pictures in document', then OK > Apply.

Confirm the change by right-clicking on the image and selecting Picture > Size. A height and width of 100% means the image has been successfully compressed.

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This feature is also available in Excel and PowerpointPowerPoint.