There are several ways to do this.
The more elaborate way is to zero out the virtual disk and then run vmware-vdiskmanager to reclaim the wiped out space.
As explained here:
If you have vmware tools installed however then there's another way.
$ sudo vmware-toolbox-cmd disk shrink /
The "/" should point to the partition that you want to shrink.
Note that you should not have any snapshots open or it will not work.
Wil| Author of Vimalin. The virtual machine Backup app for VMware Desktop Products
| Vimalin : Automated backups for VMware Fusion and VMware Workstation and Player
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| Twitter @wilva
| VMware Wiki at http://www.vi-toolkit.com
That worked perfectly:
$ cat /dev/zero > zero.fill;sync;sleep 1;sync;rm -f zero.fill $ sudo vmware-toolbox-cmd disk shrink /