Create the jpeg from the file
Create a truecolor destination image
Copy/resize with resampling
Output the result as a jpeg
The following example is copied directly from the annotated manual.
$img_src=imagecreatefromjpeg('yoursource.jpg');
$img_dst=imagecreatetruecolor(20,20);
imagecopyresampled($img_dst, $img_src, 0, 0, 0, 0, 20, 20, 20, 20);
imagejpeg($img_dst, $g_dstfile, 100);
imagedestroy($img_dst);