I also found that moving the brake levers/shifters down a little farther around the bend of the bars moves the levers closer. Look at the levers - are they pointing straight down, or are they angled forward a little? If they angle forward and out, and they are mounted high on the curve, you may be able to tweak them closer. I was surprised what a difference 1/4 - 1/2" made.

Then again, you could need new bars.