A resilient fibrous insulation blanket is compression-cut longitudinally at one and typically a plurality of laterally spaced apart locations to form a form a pre-cut fibrous insulation blanket having a plurality of blanket sections that can be separated from each other by hand. The compression cutting of the blanket to form the blanket sections causes a first major surface of the blanket to become temporarily deformed and destabilized. When the blanket is faced, the facing is applied to the other major surface of the blanket while the first major surface is still deformed. Where the blanket is formed from a wider blanket, the wider blanket is at least partially cut prior to the compression-cutting operation to reduce lateral stresses in the blanket when the blanket is compression-cut.