Is it possible to remove storage that's been added to a VM, but is not yet allocated to a disk?

As you can see in the screenshots, the VM has been assigned 250GB to a drive (Hard disk 2), but has been unallocated in disk management within the VM (Disk 1). Is it possible for me to remove that storage, or unassign it from the VM and add it back to our storage pool?

Hard Disk 2 has 250GB assigned but only 60GB is actually allocated

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Solution 1:

You can grow a virtual disk, but you can't (easily) shrink it; see documentation here: https://kb.vmware.com/s/article/1002019.

Your best bet is to create a new smaller disk, move existing data to it and delete the old one.