The original image will not be modified, and the new image will be stored in the same format – so JPEG remains a JPEG.
When resizing a picture, a copy of the original will be made, with a prefix in the filename to indicate it’s new size. The indicated pixels is the maximum width and maximum height. The little service allows you to right click one or more images to resize them: It probably will not win a beauty contest when it comes to the user interface, I was limited by the capabilities of Automator and in my experience in using it …
Being new to AppleScript and Automator, my little app (only 7 Kb!) is not an exact clone of the original Windows XP Image Resizer PowerToy, but it does offer the same functionality.