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.