This is the 830th most frequent Russian word.
работали
"Работали" means "worked" (past tense, plural).
Here, 'работали' describes a past continuous action performed by the group ('Мы').
Мы работали весь день, чтобы успеть к сроку.
We worked all day to meet the deadline.
In this case, 'работали' indicates the subject 'Они' were engaged in an activity ('над проектом').
Они работали над проектом всю ночь.
They worked on the project all night.
Here, 'работали' is used within a reported observation in the past, describing others ('они').