Place self-adhesive drywall tape evenly around the perimeter of the drywall opening, overlapping the opening the amount it needs to be reduced. Depending on the amount of the reduction, you may need to lay several rows of tape, each layer overlapping the other layers until the opening is the proper size.
Apply a coat of joint compound using a 6-inch drywall knife. Smooth the joint compound over the taped area using the knife at a low angle to the drywall or tape surface. Hold the drywall knife at a greater angle to the surface to remove excess joint compound. Work the knife over the area to make the joint compound as smooth as you can. Ensure that you cover the tape entirely. Feather the joint compound onto the wall around the tape, making it blend into or smooth thinly onto the wall. Let the joint compound dry for 24 hours.
Sand the dried joint compound using a drywall sanding sponge. Lightly move the sponge back and forth over the repaired area to remove ridges and bumps.
Apply a second coat of joint compound to the area, and sand it after it dries for 24 hours.