Unassign licenses from users

Note

The admin center is changing. If your experience doesn't match the details presented here, see About the new Microsoft 365 admin center.

You can unassign licenses from users on either the Active users page, or on the Licenses page. The method you use depends on whether you want to unassign product licenses from specific users or unassign users licenses from a specific product.

Before you begin

Use the Licenses page to unassign licenses

When you use the Licenses page to unassign licenses, you unassign licenses for a specific product for up to 20 users.

  1. In the admin center, go to the Billing > Licenses page.
  2. Select the product for which you want to unassign licenses.
  3. Select the users for which you want to unassign licenses.
  4. Select Unassign licenses.
  5. In the Unassign licenses box, select Unassign.

Use the Active users page to unassign licenses

When you use the Active users page to unassign licenses, you unassign product licenses from users.

Unassign licenses from one user

  1. In the admin center, go to the Users > Active users page.
  2. Select the row of the user that you want to unassign a license for.
  3. In the right pane, select Licenses and Apps.
  4. Expand the Licenses section, clear the boxes for the licenses that you want to unassign, then select Save changes.

Unassign licenses from one user

  1. In the admin center, go to the Users > Active users page.
  2. Pick the user that you want to unassign the license for.
  3. On the right, in the Product licenses row, select Edit.
  4. In the Product licenses pane, switch the toggle to the Off position for the license you want to unassign for the user. For example, if you switch off the Office 365 Enterprise E3 license, it unassigns that license and all services under that license for that user.
  5. At the bottom of the Product licenses pane, select Save > Close > Close.

Unassign licenses from one user

  1. In the admin center, go to the Users > Active users page.
  2. Pick the user that you want to unassign the license for.
  3. On the right, in the Product licenses row, select Edit.
  4. In the Product licenses pane, switch the toggle to the Off position for the license you want to unassign for the user. For example, if you switch off the Office 365 Enterprise E3 license, it unassigns that license and all services under that license for that user.
  5. At the bottom of the Product licenses pane, select Save > Close > Close.

Unassign licenses from multiple users

  1. In the admin center, go to the Users > Active users page.
  2. Select the circles next to the names of the users that you want to unassign licenses for.
  3. At the top, select More options (...), then select Manage product licenses.
  4. In the Manage product licenses pane, select Replace existing product license assignments > Next.
  5. At the bottom of the Replace existing products pane, select the Remove all product licenses from the selected users check box, then select Replace > Close.

Unassign licenses from multiple users

  1. In the admin center, go to the Users > Active users page.
  2. Select the boxes next to the names of the users that you want to unassign all licenses for.
  3. In the Bulk actions pane, select Edit product licenses.
  4. In the Replace existing products pane, select Replace existing product license assignments > Next.
  5. At the bottom of the Replace existing products pane, select the Remove all product licenses from the selected users check box, then select Replace > Close > Close.

Unassign licenses from multiple users

  1. In the admin center, go to the Users > Active users page.
  2. Select the boxes next to the names of the users that you want to unassign all licenses for.
  3. In the Bulk actions pane, select Edit product licenses.
  4. In the Replace existing products pane, select Replace existing product license assignments > Next.
  5. At the bottom of the Replace existing products pane, select the Remove all product licenses from the selected users check box, then select Replace > Close > Close.

What happens to a user's data when you remove their license?

  • When a license is removed from a user, data that is associated with that account is held for 30 days. After the 30-day grace period, the data is deleted and can't be recovered.
  • Files saved in OneDrive for Business aren't deleted unless the user is deleted from the Microsoft 365 admin center or is removed through Active Directory synchronization. For more information, see OneDrive retention and deletion.
  • When the license is removed, the user's mailbox is no longer searchable by using an eDiscovery tool such as Content Search or Advanced eDiscovery. For more information, see "Searching disconnected or de-licensed mailboxes" in Content Search in Microsoft 365.
  • If you have an Enterprise subscription, like Office 365 Enterprise E3, Exchange Online lets you preserve the mailbox data of a deleted user account by using inactive mailboxes. For more information, see Create and manage inactive mailboxes in Exchange Online.
  • To learn how to block a user's access to Microsoft 365 data after their license is removed, and how to get access to the data afterwards, see Remove a former employee.
  • If you remove a user's license and they still have Office apps installed, they see Unlicensed Product and activation errors in Office when they use Office apps.

Next steps

If you’re not going to reassign the unused licenses to other users, consider removing the licenses from your subscription so that you’re not paying for more licenses than you need.

Remove licenses from your subscription (article)
Assign licenses to users (article)
Understand subscriptions and licenses in Microsoft 365 for business (article)