Vancouver’s Insight Film Studios, one of Canada’s largest production companies, says smaller is better in the current volatile global economy.

‘We will be more of a boutique going forward, with a core staff of around 20 people,’ president Kirk Shaw tells Playback Daily.

Insight – which shot about $125-million worth of production in 2008 – is reducing its production slate by half this year, and has so far cut 28 of its 100 employees. The restructuring process also saw the company closing its casting and transport divisions, and selling off its grip and gaffing equipment.

‘In the current economic climate, our former business model just doesn’t make sense anymore,’ explains Shaw, who previously kept all aspects of production in-house with a full crew base on staff. ‘Going forward, we will be a little less aggressive and more calculated.’

Insight’s recent financial difficulties are a result of the global economic downturn and resulting money woes among its American partners and Canadian broadcasters.

‘The bad economy flushes a lot of stuff out, so there are a couple of companies that I went into partnership with that ended up being bad business decisions,’ offers Shaw, citing L.A.-based Yari Film Group as an example. The company declared bankruptcy in December 2008 and could not pay the fees it owed Insight for purchasing Christmas in Wonderland.

Shaw says U.S.-based distributor First Look — the studio’s partner on Blonde and Blonder — also impacted the prodco, having failed to make payments to a number of companies in recent months.

‘We made a negotiated settlement with them for 33 cents on the dollar, so we had to absorb that shortfall,’ he adds.

Insight’s cash flow is further complicated by Canada Revenue Agency, which is holding up the company’s 2006 and 2007 federal tax-credit reimbursements — as a result of issues relating to how producer fees and related party transactions are calculated and what qualifies. (Other Canadian producers are also dealing with the CRA over this issue.)

‘The CRA is being very responsive in terms of working out this issue with Insight and the rest of the industry,’ says Shaw.

(A spokesperson for the CRA says the agency does not comment on company cases due to privacy rules.)

Meanwhile, Insight is going ahead with two MOWs with France’s TF1 – the thrillers Conflict of Interest and Honeymoon Cruise — which go to camera in May.

The company’s international sales division will remain open and attend markets, but the future of its post-production facility is not settled.