Stuck on how to reduce the size of my PCB

You generally should move elsewhere with such kind of questions.

I don’t understand why you left so huge amount of unused space between footprints if you want the PCB to be smaller. For me the courtyard rectangle is the space I should left for each footprint and just out of this rectangle I can use space for anything else. I am positioning footprints very close one to the other. In many cases with their courtyard rectangles touching.
See:

Consider using 0805 or even 0603 LEDs.