縮 means “shrink, contract”

ちぢむ · chijimu

Also: shrivel, wrinkle

Kun'yomi (Japanese reading)
ちぢむ, ちぢまる, ちぢめる, ちぢれる, ちぢらす
On'yomi (Chinese reading)
シュク

JLPT N1 · Taught in grade 6 · 17 strokes

The story

Thread (糸) beside 宿, an inn: picture a wool sweater shrinking after one hot wash at the inn. 縮む is to shrink, 縮小 is scaling down, and 恐縮です, shrinking in awe, is a polite way to say you feel obliged or sorry.

Used in 縮む (chijimu, to shrink), 縮小 (shukushou, reduction), and 恐縮 (kyoushuku, feeling obliged/sorry)

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Readings from KANJIDIC2, © EDRDG, CC BY-SA.