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Click on any image on the page of your Word document to select it. This will open the "Format" menu in the blue menu bar at the top. On Mac this tab is labeled "Picture Format" at the top of Word. Click the "Compress Pictures" button which resembles a photograph with blue arrows on each corner. It's located in the top-left section of the menu at the top of your Word document. On older versions of Word, click Format at the top and select Compress Image from the drop-down menu. If you want to apply compression to all the pictures in the document, select "All pictures in this file" unchecked. If you only want to compress only the image you selected, Select "Selected pictures only". If you've cropped any images in Word you can also check the box for "Delete cropped areas of pictures" which will delete the cropped areas permanently. This will reduce the file size, but you'll no longer be able to adjust the cropping. Click the radio button for the level of compression you want to use, ranging from HF (Maximum image size), (HD 330 PPI) to Email (96 PPI). The lower the PPI, the more you will lower the file size of your Word document which will also decrease the image quality of the picture as well.  Some options may be unavailable if the images in your document are already compressed below the higher PPI resolutions. Lower PPI resolutions are designed to be viewed on a computer screen.  The image may look fuzzy in print format. It's at the bottom of the window. This compresses the images in your document which will reduce the file size of your Word file.
Select an image in your Word document. Click . Select which pictures you want to compress. Select a resolution. Click Ok.