It's a reduction in laminar flow friction, the layers of flow within the oil itself, not internal engine metal-to-metal friction.
I realize that internal engine friction was not mentioned above, but I have read posts on BITOG wherein the two get confused.
Fuel saving oil has less laminar flow friction, within itself, in order to save fuel. It does not reduce engine wear more than non-fuel saving oil, unless quicker distribution around the engine at start-up is taking place. The difference between, say, Castrol Edge 5w30 and GC, in this respect, would likely be very minimal, if any.