Yes you will need some smaller hooks. However what size and style of hook you use will depend on how you are fishing them.
If you are going to set up the worm to be weedless on day a texas, carolina, or even weightless rig then I would use an 1/0 EWG hook. If the bait is going to be rigged wacky on these same rigs you could even step down to a size 1 EWG.
Now if you are going to use it on a dropshoot you might consider changing the stlye of hook to a dropshot hook. Personally I like the Owner down shot hooks in a size 1/0 for 4 inch senkos.
But flippinbaits is correct that the size of the hook will have a large effect on the action of the bait.