Birmingham, Alabama, October 2, 2025
News Summary
Pack Health, a digital health coaching company in Birmingham, will close its headquarters by the year’s end, impacting 98 jobs. The closure is due to slower market adoption and the loss of a major customer. Despite earlier expansion plans, the company has faced challenges in maintaining customer retention and market growth.
Birmingham Plans to Close Pack Health Headquarters, Cutting Jobs
Pack Health, a health care company founded in Birmingham in 2013, plans to shut down its Birmingham facility by the end of the year. The closure will result in the elimination of 98 jobs, as confirmed in a notice filed with the state by the company. The closure was also acknowledged by Quest Diagnostics spokesperson Jennifer Petrella.
The decision to close the Birmingham facility has been attributed to slower market adoption than expected and the loss of a major customer. Pack Health, which provides digital health coaching services to individuals managing chronic conditions, had its operations acquired last year by Quest Diagnostics, a company based in New Jersey, for an undisclosed amount.
The Birmingham headquarters was established five years after the company launched and had previously announced plans in January 2023 for an expansion that included a $5 million investment aimed at doubling its workspace and adding at least 200 new full-time jobs. This expansion was expected to generate up to $27 million in economic impact over two decades, benefiting from interests and backing from state and county incentives.
Pack Health was recognized for its successful start as a company in Alabama, with former Alabama Department of Commerce secretary Greg Canfield remarking on its status as one of Birmingham’s most successful startups in 2023. However, this closure is indicative of a changing marketplace, as Pack Health navigates the challenges associated with market demand and customer retention.
In line with federal law requirements, large employers must file a public Worker Adjustment and Retraining Notification (WARN) notice with the state prior to mass layoffs or plant closures. Alabama’s Department of Commerce publishes these notifications, which adds a layer of transparency to significant employment changes within the state.
The expected job cuts from Pack Health contribute to a larger trend, with over 3,200 employees impacted by mass layoffs and closures in Alabama in 2025, surpassing the count from the previous year. Pack Health is known for connecting members with personal Health Advisors for coaching sessions, providing personalized support and resources to those managing chronic conditions.
Background on Pack Health
Founded to assist patients with chronic health conditions, Pack Health’s focus has been on providing a digital platform that connects patients with health coaches. The company has cooperated with various stakeholders, including employers and health plans, to create an environment that supports individuals in their health journeys.
Despite its recent setbacks, Pack Health’s previous expansion plans indicated a positive outlook for growth and potential job creation prior to the announcement of its headquarters’ closure. The shifting dynamics in the health care market, leading to less than anticipated growth, highlight the variability and risks faced by startups in this sector.
Impact of Layoffs on Alabama
The layoffs at Pack Health are part of a larger employment landscape challenge in Alabama, where mass layoffs have been on the rise. The ongoing trend may indicate challenges within various sectors and could impact local economic growth and workforce stability.
Conclusion
The impending closure of Pack Health’s Birmingham headquarters marks a significant shift for the company and the local job market, resulting in job losses and highlighting the challenges faced by the health care industry in segments reliant on quick adaptability and customer acquisition.
FAQ
What is Pack Health planning to do?
Pack Health plans to shut down its Birmingham facility by the end of the year.
How many jobs will be cut due to the closure?
The company is cutting 98 jobs as part of the closure.
What reason was given for the closure?
The decision to close was based on slower market adoption than expected and the loss of a major customer.
What services does Pack Health provide?
Pack Health is a digital health coaching service that assists patients with chronic conditions and works with employers, biopharmaceutical companies, and health plans.
What was the state economic impact expected from Pack Health’s expansion plans?
The expansion was expected to generate up to $27 million in economic impact over two decades.
How many employees are impacted by mass layoffs and closures in Alabama?
The expected job cuts from Pack Health contribute to over 3,200 employees impacted by mass layoffs and closures in Alabama in 2025, surpassing last year’s count.
Key Features of Pack Health Closure
| Feature | Details |
|---|---|
| Company Name | Pack Health |
| Location | Birmingham, Alabama |
| Closure Date | End of 2023 |
| Jobs Affected | 98 |
| Reason for Closure | Slower market adoption and major customer loss |
| Parent Company | Quest Diagnostics |
| Expansion Announcement | January 2023 |
| Economic Impact of Expansion | $27 million over 20 years |
| Total Employees Impacted Statewide | 3,200 in 2025 |
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Additional Resources
- CBS 42: Pack Health Closing in Birmingham
- Wikipedia
- ABC 33/40: Pack Health to Close Birmingham Facility
- Google Search: Pack Health Birmingham
- AL.com: 98 Layoffs Coming as Birmingham Health Care Company Closes
- Encyclopedia Britannica: Pack Health
- Made in Alabama: Pack Health to Expand Birmingham Operation
- Google News: Pack Health
- Bham Now: Quest Diagnostics to Acquire Pack Health
Author: STAFF HERE BIRMINGHAM WRITER
The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
