Unfortunately there exist no such plugins. But you can override the profile icon update action and can use imgmagick for this.
@Team Webgalli, thanks for the tip :) I'm guessing the code in Tidypics would be helpful for a beginner.
Not quite sure what to do but I'll take a look at profileiconupdate.php and see if I can follow the code around to where the changes need to be made.
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