I'm not too surprised by the move, I worked 6 years at yahoo and have always been amazed at how naive the company was with WFH. It may seem hilarious, but I strongly believe the company actually thought those employees would a) work and b) be at home!
It was not uncommon to see people getting 2 or 3 days per week at home. I personally rolled with 2 per week for several years and it was great. I'd do a few emails in the morning, and that was about it for the day. I'd generally go play a full round of golf or spend the day biking.