Note: Before you unassign a licence to a user in Microsoft 365, you may want to convert the user to a shared mailbox to retain access to the email service.
Here are the steps to unassign a license for a user in Microsoft 365 admin:
- Log in to the Microsoft 365 admin center with your administrator account.
- Go to the Users section and select Active Users.
- Find the user you want to unassign the license from and select their name.
- In the Licenses section, find the license you want to unassign and uncheck box next to it.
- Confirm that you want to unassign the license.
Note: Once you unassign a license, the user will lose access to the associated services and apps associated with that license. Except for Exchange if that user has been converted to a shared mailbox.