number of photos actually increase in size when I reduce the resolution
The photos are not increasing in size, just the file size.
Set the compression quality lower, to 70 and the file size will shrink.
You didn't mention what format your 876 KB file was, before you downsized, but assuming it too was a JPG, the Quality setting of that JPG save might not have been as high and as good as what was used in the Qimage save at a setting of 100.
Fred