Step-by-step guide to remove license from a user in Office 365

Managing user accounts in Office 365 is an essential task for administrators. Whether you're setting up new employees or managing user roles, this guide will walk you through the process of removing a user license with ease.
Step 1: Log in to Office 365 with Admin privileges
To start, ensure you are logged into office.com using an account with admin privileges. Without these rights, you won’t be able to create or manage users.

Step 2: Open the Admin panel
Once logged in, locate the Admin app from the available Office 365 applications or by selecting it from the app launcher (the grid icon in the upper left corner). This will take you to the Office 365 Admin Center.

Step 3: Navigate to Users > Active users
In the left-hand navigation panel, go to Users and select Active Users. This will display a list of all active users within your Office 365 organization.

Step 4: Select the user to remove the license
From the list of active users, click on the name of the user you want to remove a license from. This will open the user's account details.

Step 5: Go to the licenses and apps section
Once you're in the user’s account details, scroll down or navigate to the Licenses and Apps section. Here, you’ll see a license that can be removed from the user.

Step 6: Remove the assigned license
Uncheck the assigned license to remove the license has been assigned to the user.

Step 7: Save and apply the changes
After removing the license, scroll down and click Save. This will remove the license from the user’s account, and they will now be denied access to the services covered under that license.

Step 8: Verify license removal (optional)
To verify that the license was removed successfully, go back to the Active Users section and click on the user’s name again. You should see unlicensed under their account.

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Bharath Kumar
Senior Microsoft 365 Consultant • 8+ years
Bharath is a Senior Microsoft 365 Consultant specializing in enterprise productivity solutions and white-label IT services. He has successfully deployed Microsoft 365 for over 200 organizations and helps MSPs build scalable white-label partnerships.
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