Do you use thumbnails? If so, are they saved separately or is the enlarged image fully uploaded and simply resized on the web page? Having separate thumbnails the size of which is shown on your pages will save a lot of bandwidth.
You can reduce the quality factor in JPEGs until you see it. When you do this, you will see an improvement in file size. However, as you suspect, since you already have JPEGs, you can see the checkerboard artifacts in the images before because you are compressing already compressed images.
GD or IM work well.
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