When working with a word document, other than changing the paragraph and line spacing, you also can change the spacing between letters and words. You can change the letter spacing in two ways: Expanded or Condensed. Please see the steps below for details:
Step 1: Select the contents you want to increase (or decrease) the letter spacing;
Step 2: Click the "Home" tab from the ribbon;
Step 3: Click the Font Dialog Box Launcher in the corner of the "Font" section;
Step 4: Click the "Advanced" tab in the "Font" dialog box;
Step 5: In the "Spacing" box, select "Expanded" if you want to increase the spacing between letters, or select "Condensed" if you want to decrease the spacing, then type the value you want to expand or condense.
Step 6: Click "OK" at the bottom to finish. The following is the comparison when the spacing is expanded to 1.5 pt.
Please refer to how to remove extra spaces in word to change the spacing between words only.
Step 7: The following is the results when the spacing is condensed with 80% scale.