1. Login to the Virtual Machine and shrink the Partition you want at windows level with disk management.
2. Reducing the size of the VMware Virtual Machine Disk (VMDK) with desctripter file on esxi host.
Detailed steps Shrink a VMware Virtual Machine Disk (VMDK) – virtualman
V2V has its own pros and cons, check in above link and its on you which way you want to do with.
Almost worked for me VM boots just fine but O/S never finishes loading.
Have you shrinked the partition within Windows before you resized the VMDK? If not, you might have to roll the change back using a backup or a snapshot as lowering the size of disk without resizing the partition first in the OS might have damaged the internal OS files.
Thanks Paul, but of course I have done that prior to changing VMDK.
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Does the VM per chance have a "Dynamic" disk type or a logical partition? That would perhaps explain the problem - "Dynamic" disks store their partition information at the end of the device, which you've just cut off. Volumes in logical partions will be shrunk, but the logical partition itself won't shrink with it, which could also cause a problem.
Since the instructions above need some temporary space anyway, here's how I do it - I just add a new drive of the desired, smaller size to the VM. Then I shrink the volume and add a mirror to the new drive. Once that is synchronized, I break the mirror and remove the old, bigger drive. This requires conversion of "Basic" disks to "Dynamic" disks, but that hasn't been a problem for me in the past.
after wrestling with a similar issue, for far too long (deriving from a P2V, originally badly-configured server 2012 R2 server), and working through several different methods, I eventually found success by paying $180 for casper server edition, creating a correctly-sized VMDK (120GB) and cloning the 60 GB of data from the 880GB vmdk (Dell OEM partition, recovery partition, and OS partition) to the new VMDK. After a quick rename of the old and new VMDKs, I was booting up with the 120GB VMDK. I estimate I spent about 10x as much in (un-)billable time as the cost of casper.
Unfortunately Casper Server Edition does not work with dynamic disks, so if you have a simple layout with already-existing dynamic disk(s), the method describe in reply 5 would probably work for you.