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I'm pretty sure that picture is a vector drawing with some extra touch-ups/effects added on. If you want to copy it exactly, look into vectors, vector drawings and become really good friends with your pen tool.

You can kind of (not really) imitate that effect using posterize, try something like this:

Image->adjustments->desaturate

then

image->adjustments->posterize

drag the bar down to somewhere between 16 and 4 (just a guess, it'll depend on the picture)

at this point you should just have large areas of grays and blacks left, but the edges will be messy you can either apply a soft Gaussian blur to the whole image (Filter->blur->gaussian blur, set to somewhere between .5-1.0), or use your blur tool to soften up the edges.

This is not an exact duplicate of the effect, and will look less clean/professional, but it's the closest I can get you without getting too advanced, or teaching you how to vector.