If your organization is on an Office 365 for business plan, your users will need licenses to access all of the features of the plan. Most of the time, you’ll assign the user a license when you first create their Office 365 account.

Using the admin center, you can also assign users a license or edit existing license assignments.

If a user leaves your organization, deleting their account will automatically unassign their license(s), allowing them to be available for reassigning to existing users. But you may want to simply remove or unassign a license from an active user, and you can do that in the admin center.

The video above will show you how to assign or remove licenses for both individual users and bulk users in the Office 365 admin center.

Use caution when unassigning licenses, because according to Microsoft, “When a user’s license is removed, all data that is associated with that user account is held for 30 days. After the 30 day grace period, the data is deleted and can’t be recovered, except for documents that are saved on SharePoint Online” (source).