There is functionality to reduce the physical file size without loosing too much quality, I’m away from the office atm so can’t tell you the exact procedure to follow unfortunatly, I’ll post tonight when I’m back at the office.
In Photoshop you can ‘save for web’ if you really want to drop the file size. Drop down the FILE menu – it’s in there. Then use the new right hand side menu to adjust the quality, size & resolution.
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