In fact, more and more studies are indicating that people working from home are more productive, have a lower attrition rate and cost the company less money to support and manage. Admittedly the study was of a travel agency, where people are working the phones and not really interacting with other workers; it is not for every business. Not everyone enjoyed the experience either:
Surprisingly, when the experiment was over, almost half of those who were working from home in the experiment asked to come back to work in the office; the ones who performed best at home were the ones who preferred to stay at home. Clearly WFH doesn't work for everyone. But giving people the choice of home or office improved everyone's performance.