Reducing Hyper V disk size

Hello Support,

I have a Windows server 2019 standard as a host.  I have converted a windows server 2008 R2 physical server to virtual (P2V) and used it as a VM in the host.  The allocated hard disk space for this VM is 350 GB.  I have an online backup and I am exceeding the 500 GB for both host and VM.  is there any way that I can reduce the 350GB VM size without causing any issues?

I appreciate your help.

Thanks,

Jamshid