A health care company that previously announced big plans for expansion and hiring at its Birmingham headquarters is now shutting down.
Pack Health, which was founded in Birmingham in 2013 and later acquired by Quest Diagnostics, plans to close by the end of the year, the company said in notice filed with the state.
The local health care company is cutting 98 jobs with the closure, according to the notice.
Quest Diagnostics spokesperson Jennifer Petrella confirmed the company’s closure.
“We have begun to notify impacted employees of this decision, with some employees departing the company today,” Petrella said in an email to AL.com. “Slower market adoption than expected, combined with the loss of a major customer, provided the basis for this decision. We did not make this decision lightly and are committed to supporting our affected employees through this difficult transition.”
Pack Health is a digital health coaching service that works with patients to address chronic conditions. Its clients are employers, life science and biopharmaceutical companies, health plans and other organizations that work with health management.
The company established its headquarters in downtown Birmingham five years later.
Less than three years ago, the local health care company announced big plans: investing $5 million in expanding its Birmingham headquarters, doubling its space and adding at least 200 new full-time jobs. That expansion was boosted with promises of incentives and tax cuts from the state and county.
“Pack Health represents one of Birmingham’s most successful startups,” former Alabama Department of Commerce secretary Greg Canfield said in 2023. “This is great news for Birmingham and a testament to the vitality of the region’s start-up ecosystem.”
At the time, the Birmingham Business Alliance said the expansion would generate up to $27 million economic impact over two decades.
The company announced its expansion in January 2023. New Jersey-based Quest Diagnostics acquired Pack Health for an undisclosed amount just one year before.
Federal law requires large employers to file a public WARN notice with the state in advance of mass layoffs or plant closures. Those WARN notices are published by the Alabama Department of Commerce.
The expected job cuts bring Alabama’s tally of employees impacted by mass layoffs and closures in 2025 to more than 3,200 – surpassing the count for last year.
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