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It's actually not that hard. If the assigned tasks are being fulfilled within set parameters there's really nothing to observe and keep track of. What they're worried about and what they can't monitor and observe is what the employees are doing outside of those tasks.
My friend works from home he does all his work and in the down time he'll run errands, work out, and play pool at his local bar. Whatever. His work is fully completed and submitted and his performance views are top notch.
And that's pretty much the only thing employers need to be worried about. How well the work is being completed.
Fuck the office.
Your former coworkers are incredibly lucky that after showing management how to turn 80h/week into 4h/week, they didn't keep the automation train going. Because the very next thing they would do is lay off 90% of the staff and make the remainder still work full time.
Automation should do what you did - give people more time off. Just about every corp uses it to minimize labour costs, though.
Management probably didn't realize that the work was getting automated.