News Summary
Pack Health, a digital health coaching company based in Birmingham, will close its headquarters, leading to the loss of 98 jobs. This closure, confirmed by Quest Diagnostics, comes as the company faces market challenges and slower adoption of its services. Despite earlier plans for expansion and job creation, the loss of a major customer has significantly impacted the company’s viability. The decision marks a significant blow to Birmingham’s startup ecosystem, highlighting ongoing struggles in the region’s job market.
Birmingham, Alabama – Pack Health, a healthcare company established in Birmingham in 2013, is set to close its headquarters by the end of the year, resulting in the loss of 98 jobs. This decision comes amidst market challenges affecting the company, as indicated by a notice filed with the state.
The closure was confirmed by a spokesperson for Quest Diagnostics, the New Jersey-based company that acquired Pack Health less than three years ago. According to the spokesperson, the company faced slower market adoption than expected for its services and the loss of a major customer played a significant role in the closure decision. Notifications to impacted employees have commenced, with some staff leaving their positions immediately.
Pack Health specializes in providing digital health coaching services for patients managing chronic conditions. The company had previously established its headquarters in downtown Birmingham five years after its founding. Plans for expansion were announced in January 2023, which included investing $5 million to double the headquarters’ space and create at least 200 new full-time jobs. These plans were supported by promises of state and county incentives, as well as tax cuts designed to bolster local employment.
The closure of Pack Health is recognized as a considerable loss for Birmingham’s startup ecosystem. The company was viewed as one of Birmingham’s most successful startups, contributing to economic growth in the area. The expansion, which was projected to generate an economic impact of up to $27 million over a 20-year period, now appears to be obsolete following the announcement of job cuts and the headquarters closure.
Federal law mandates that large employers submit a public WARN notice to the state prior to mass layoffs or company closures. Pack Health complied with this regulation, outlining the job cuts in the public notice. This latest announcement adds to a troubling trend in Alabama, where over 3,200 employees have been affected by mass layoffs and closures in 2025 alone, surpassing the counts from the previous year.
Pack Health’s digital platform connects members with personal health advisors, facilitating virtual coaching sessions aimed at improving health outcomes for individuals with chronic conditions. The company’s sudden pivot away from its expansion goals and workforce diminishment has raised concerns about the viability of similar startups within the region.
The impending closure of Pack Health not only impacts the employees directly affected but also signifies a setback for Birmingham’s efforts to establish itself as a hub for healthcare innovation and technology. The current job cuts highlight the challenges that companies face in adapting to market demands and maintaining customer relationships in an increasingly competitive landscape.
Deeper Dive: News & Info About This Topic
- CBS 42: Pack Health Closing in Birmingham
- Wikipedia: Birmingham, Alabama
- AL.com: 98 Layoffs Coming as Pack Health Closes
- Google Search: Pack Health
- ABC 33/40: Pack Health to Close Birmingham Facility
- Google Scholar: Pack Health
- Bham Now: Quest Diagnostics to Acquire Pack Health
- Encyclopedia Britannica: Health Care
- Business Alabama: Pack Health Acquired by Quest Diagnostics
- Google News: Health Startups Alabama
Author: STAFF HERE HUNTSVILLE WRITER
The HUNTSVILLE STAFF WRITER represents the experienced team at HEREHuntsville.com, your go-to source for actionable local news and information in Huntsville, Madison 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 Panoply Arts Festival, Rocket City Brewfest, and Huntsville Comic & Pop Culture Expo. Our coverage extends to key organizations like the Huntsville/Madison County Chamber of Commerce and HudsonAlpha Institute for Biotechnology, plus leading businesses in aerospace, defense, and manufacturing that power the local economy such as Boeing, SAIC, and Mazda Toyota Manufacturing. As part of the broader HERE network, including HEREBirmingham.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
