Since you’re using that particular widget in that section it is designed to have spacing in between each div. Each div holds 1 post…..which means, even if you don’t have content inside of the div/post, the padding of the div container will still show after each one.
You can remove 40px from the bottom of each div/post by looking in your style.css file around line 1378 and replace this code –
.featured-content .entry {
margin-bottom: 20px;
margin-bottom: 1.25rem;
padding: 0 0 20px;
padding: 0 0 1.25rem;
}
With this code –
.featured-content .entry {
margin-bottom: 0;
padding: 0;
}