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Remove or reassign licenses

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Remove licenses you're not using to help reduce your Office 365 bill, and reassign a license when someone new joins your organization.

Sign in to the admin center.

  1. Select Billing > Subscriptions. Remove the license you don't need by changing the number of licenses available.

  2. Select your product, as an example, Office 365 Business Premium, then select Add/Remove licenses.

  3. Select the down arrow to decrease the total number of users. To confirm the change, click Submit.

  4. You can also assign a license to a new user on the same page. Select Add a user. For the product license, choose your remaining unassigned license for the plan that you want.

  5. Add your user. Your new employee is ready to use Office 365.

Each employee using Office 365 needs a license, so let's make sure you're only paying for the licenses you need by removing any extras.

Start by going to the Admin center in Office 365.

Select Billing, Licenses. We're only using three licenses and two extras.

This is likely because we recently removed two users who were former employees.

Since then, we've made one new hire.

We'll assign one license to this new hire and remove the extra license that we don't need. Select Billing, Subscriptions.

We can remove the license we don't need by changing the number of licenses available.

Ensure Office 365 Business Premium is selected, then select Add/Remove licenses.

Select the down arrow to decrease the total number of users from five to four.

To confirm the change, click Submit.

On this same page, we can also assign a license to our new user.

Select Add a user to add our new employee Amanda.

For the product license, choose your remaining unassigned license for the plan that you want.

In this case, we're choosing Office 365 Business Premium.

Add your user. Your new employee is ready to use Office 365.

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