Assign and Remove a License from a User in Office 365
You can remove Office 365 licenses from users and either assign them to another user or have them deleted from your subscription.
When you remove the license, all that user's data is held for 30 days. You canaccessthe data, orrestorethe account if the user comes back. After 30 days, all the user's data [except for documents stored on SharePoint Online] is deleted permanently from Office 365 and can't be recovered.
- Go to theOffice 365 admin center.
In the Microsoft 365 admin center, selectUser management.
Select the employee that you want to block, and then chooseLicenses and Apps.
On theLicenses and Appspage, un-check the box next to the subscription to remove the license and clickSave changes.
To reduce the number of licenses you're paying for until you hire another person have an admin email .