1) They really were over-staffed.
2) The people who remain have simplified it to match the new staffing.
3) The system was stable enough to not need constant interventions and updates, so it keeps on running... but the people still hope nothing breaks because they have no idea how to handle a true emergency, and it is just a matter of time until they are truly hosed.
The only thing I'm worried about is security, but my data is probably already been sold multiple times so whatever...
It's probably all three and will depend on the person in question which of these 2.5 categories they fit into.
There's also of course the part where people were doing work considered useful based on the goals of the prior company leadership, but who's services aren't missed by the new leadership in meeting their goals.
More people can get less done due to communication inefficiency.