A major move by one of the top greeting card manufacturers out of the United States.

Hundreds of Canadian jobs are being cut at the Hallmark Cards. The company says the work is being shifted to the United States. These are uncertain times for employees at Canada's Hallmark Headquarters in Toronto. 

Aline Sarivoyajyn is a graphic designer with Hallmark Cards.  Asked if she still had a job, she replied “I have no idea, it’s very secretive.”

The iconic greeting card company is consolidating operations in the United States.  Some changes have already taken place at its Kansas City headquarters; now its Canada's turn. The layoffs at Canadians’ headquarters in Toronto will begin in January.  About 300 positions at its main office and distribution center will be cut.  Hallmark maintains it is not changing its retail presence in Canada. It has been in Canada for more than 80 years.

Katerina Mertikas is counting on that.  The Ottawa artist just recently signed on with Hallmark for some of her paintings to be used as Christmas cards. 

“I can't believe it,” says  Mertikas, “walking in the store and seeing my name there under Canadian art, it's very touching.”

The news of layoffs has her worried.

“I hope it's not a trend that's going to follow with many other  companies.”

But business analyst Ian Lee says it's already happened with Heinz and Caterpillar, both American-based companies that recently announced layoffs in Canada.  Ian Lee with Carleton University’s Sprott School of Business blames higher labor costs in Canada.

"The minimum wage in the United States is $7.25 an hour or so. Here's it's over $10 an hour and the government of Ontario is discussing taking it to $14 an hour which would be a one hundred percent differential in the cost of labor.”

The owner of 12 Hallmark stores in the Ottawa area says sales of greeting cards are still strong though many customers we spoke with are finding other ways to reach out:

"I find there's a lot of e-cards sent,” says shopper Jordan Leggett, “not cards sent. At least I haven't received any.”

Shopper Liz Whelly though still buys as many cards as she did before, “There are a lot of people that you don't talk to very often and Christmas is a nice time to let them know you think of them.”

Katerina Mertikas is counting on that for her and other Canadian artists who rely on those Hallmark moments to make ends meet.