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There are many reasons someone might want the sleeves shortened on a jacket. This particular jacket is lined and there is topstitching on the outer edge of the sleeve. With a lined jacket the first thing to do is to detach the lining from the fashion fabric (or outer fabric) using a seam ripper.
Then you need to remove the line of topstitching.
Once the topstitching is removed you can unfold the sleeve and lay it out flat. Notice the crease showing the original sleeve length and the needle marks near the beginning of the ruler which show where the original top stitching once was.
This sleeve needed to be shortened 1 1/4 inches. The measurement is taken from the crease of the original sleeve length, not from the raw edge of the fabric. Once measured, turn under the desired amount and pin.
Using a sewing machine that has a free arm (a free arm gives you the convenience of sliding the sleeve onto the sewing machine, rather than sewing on a flat surface). Top stitch the sleeve, approximately 1″ from the edge.
When finished stitching lay out the sleeve pull out the excess sleeve length and trim the extra, about 3/4″ from your line of stitching.
Now turn the jacket sleeve inside out. Align the lining with the sleeve, matching the seams. Trim away the same amount of fabric off the lining, as you took off the outside fabric. Make sure not to make the lining too short. Measure before you cut! Turn under the raw edge of lining. Pin and slip stitch the lining to the jacket making sure to only catch the fabric on the inside of the sleeve. You don’t want your hand stitching to show through to the outside.
Turn the sleeve right side out. Repeat the process on the other sleeve.
Congratulations! You have successfully shortened the sleeves of a jacket!
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