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In DB2 9.7 for Linux/UNIX/Windows, you can use the ALTER TABLE statement to reduce the length of a column, assuming that no values in the column exceed the new column size:
ALTER TABLE temp
ALTER COLUMN col1 SET DATA TYPE VARCHAR(60);
If any values in the column exceed the desired size you must handle that first.
In previous versions of DB2 for Linux/UNIX/Windows, you could not utilize this method to reduce the size of the column. You either had to drop/recreate the table, or go through a process of adding a column, copying data, and removing the old column.