How to update image and also create thumbnail in PHP

 This example will let you save the image in half of its original size.
This new size of the image can be altered according to your need. Hope u'll find this helpful

// File and new size
$filename = 'test.jpg';
$percent = 0.5;

// Content type
header('Content-Type: image/jpeg');

// Get new sizes
list($width, $height) = getimagesize($filename);
$newwidth = $width * $percent;
$newheight = $height * $percent;

// Load
$thumb = imagecreatetruecolor($newwidth, $newheight);
$source = imagecreatefromjpeg($filename);

// Resize
imagecopyresized($thumb, $source, 0, 0, 0, 0, $newwidth, $newheight, $width, $height);

// Output
imagejpeg($thumb);
?>