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'they're working on' is correct and can be used in written English
You can use it to indicate that a group of people are in the process of doing something. For example: "My team is working on a new project that will help reduce my company's emissions."
Exact(59)
They're working on it.
They're working on plans….
But they're working on it.
They're working on missiles.
They're working on it now".
They're working on it there".
"They're working on the script.
Ms. Tsarnaeva: Now they're working on it.
While here, they're working on being present.
The answer is, they're working on it.
Similar(1)
The song they were working on was The Ministry of Social Affairs.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com