ļ»æBarely a week into the new year, on January 7, 2025, Southern California faced a series of devastating wildfires, most notably the Palisades and Eaton fires, which were exacerbated by drought conditions and powerful Santa Ana winds reaching up to 100 miles per hour. Collectively, these fires burned over 37,000 acres, destroyed more than 18,000 structures, and resulted in at least 29 fatalities. Collectively over 52,000 people had to evacuate their homes, some in the middle of the night, as the Palisades Fire consumed approximately 23,448 acres in areas including Pacific Palisades, Topanga, and Malibu. The Eaton Fire also scorched over 14,000 acres near Altadena and Pasadena. The fires were finally fully contained on January 31, 2025, but in their wake they left significant damage, displacement and indescribable emotional pain.
The Southern California fires had a devastating impact on local businesses. Thousands of businesses were either completely destroyed or suffered significant structural damage, forcing many owners to shut down. Tourism, a key economic driver in the region, took a major hit as travelers canceled plans due to air quality concerns and widespread evacuations. Small businesses, including restaurants, boutiques, and service providers, struggled with supply chain disruptions, lost revenue, and now face the financial burden of rebuilding. Larger businesses are left with employees who are struggling with the emotional toll of losing their home to the fire, long term displacement and or the overwhelm of mass community destruction. While relief efforts and government aid will provide some assistance, the long-term economic recovery for affected businesses remains uncertain.
With both business and employee needs at an unforeseen high, due to the unfortunate circumstances of the fire, the fate of many businesses are unknown. As a result of these fires, business leaders are tasked with how to support the logistical and emotional long-term needs of the employees while keeping the operational needs of the businesses running. The UCLA School of management published a business and economic forecast using data from four previous California fires. As a result of the fires, their predictions include a reduction in the GDP by $4.6 billion with a loss of wages of local business and employees totaling $297 million in 2025.
Businesses both need support and play and active role in the recovery of the communities that were impacted. Business leaders from APPLE, Salesforce and Disney and many other large businesses have already expressed their support and concern for the affected communities. Additionally the U.S. Chamber of Commerce Foundation is coordinating response efforts to discuss the business communityā€™s role in delivering in delivering relief.
The podcast series, After the fire, features a diverse set of stories including business leaders who have been impacted by fires, leaders who are committed to helping employees heal from the long term impact of yet to come and/ the perspectives of those willing to share their stories and leadership in hopes of helping others heal.
