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By default, the "process thumbnails" step for OOTB "DAM Asset Update" workflow generates PNG files. Is there a way to generate jpgs (without writing custom code) since jpgs are smaller in file size?
"Process Thumbnail " process step use RenditionMaker API's thumbnailTemplate<https://helpx.adobe.com/experience-manager/6-5/sites/developing/using/reference-materials/javadoc/co...
to create renditions And this only create thumbnail in png.
If this is your must have requirement than I would suggest to create custom process step and make use of RenditionMaker API to create thumbnails based on your requirement.