I’ve shared Fences by StarDock to reduce the desktop icon clustering, still case you are looking for a simpler way then you can try lists the desktop icons in list view, reducing the size and increasing desktop space for having more icons.

List view is available in folders in Windows but not available for the desktop where all icons and folders are only seen in large sizes.Using Desktop List View application which is a tiny application which lets you lists all desktop icons and folders in list view in a single click.

In case you want the list view of your desktop by default the extract the “desktopListView.exe” from the zip file and paste it in “C:\Documents and Settings\All Users\Start Menu\Programs\Startup” folder.

In case you want to revert your desktop back to it original state, then from the extracted zip just run “unload.bat”

Download : DesktopListView [ZIP]