For example, if you have 25 licenses and you want to remove one of them, enter 24. In the Remove licenses pane, under New quantity, in the Total licenses box, enter the total number of licenses that you want for this subscription.On the details page, select Remove licenses.Select the subscription from which you want to remove licenses.In the admin center, go to the Billing > Your products page, and select the Products tab.To reduce the number of licenses you're paying for until you hire another person, do the following steps: Clear the check boxes for the license(s) you want to remove, and then select Save changes.Select the name of the employee that you want to block, and then select the Licenses and Apps tab.In the admin center, go to the Users > Active users page.After 30 days, all the user's data (except for documents stored on SharePoint Online) is permanently deleted from Microsoft 365 and can't be recovered. You can access the data, or restore the account if the user comes back.
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When you remove the license, all that user's data is held for 30 days. After the user account is deleted, any Exchange Online license associated with the user account will be available to assign to a new user. If the mailbox needs to be accessed by authorized people who have been granted eDiscovery permissions for compliance or legal reasons, it must be assigned an Exchange Online Plan 2 license (or an Exchange Online Plan 1 license with an Exchange Online Archiving add-on license) so that a hold can be applied to the mailbox before it's deleted. You can assign a license to another user if you don't delete it. If you don't want to pay for a license after someone leaves your organization, you need to remove their Microsoft 365 license and then delete it from your subscription.