You can compress pictures to reduce both file size and picture dimensions based on how you intend to use the picture, such as in Web pages or e-mail messages.
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In the Compress Pictures dialog box, under Apply to, pick an option if you want to compress selected pictures or all pictures.
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Under Change resolution, pick an option.
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To view on web or screen, select Web/Screen.
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To be able to print, select Print. Note that pictures in Office are automatically compressed for printing at 220 dpi.
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If you have cropped any pictures, you can reduce the file size even more by selecting the Delete cropped areas of pictures check box.
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Click OK, and then in the prompt, click Apply.