The Intervention/image package in Laravel provides a simple way to compress images, reducing data usage and storage needs while maintaining image quality. The process involves installing the package, setting up a controller and routes for compression functionality, validating uploaded images, resizing them using the Facade, saving them in a specified path, and returning a response with the compressed image's data. Image compression is crucial for businesses to reduce storage costs and improve page load times, making it an essential topic in software development and developer marketing.