You can use imagemagick to do this, but I think it would be easier to use the php image functions to shrink the image and save it as a thumbnail.
One of my sites, www.dubr.com allows members to upload images which are then automatically resized into thumbnails using copy_image_resized();
To use imagemagick, I would pass it command line commands [which can be tricky] with a php script.
I don't know the syntax off hand for imagemagic, but once you figure out how to resize images from the command line, just have your script do the same thing via one of the following: system(), passthrough() or exec()
again, not sure which one will work.