Delete a user account to free a license
If a user no longer needs licenses, like when an employee leaves an organization, you can delete that user’s account. When you do this, any licenses that were assigned to that person become available to assign to another user.
Caution 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. For information about how to block a user’s access to Office 365 data after their license has been removed and how to get access to the data afterwards,
To delete the account for one or more users
Do one of the following:
1. Sign in to Office 365 with your work or school account.
Tip You need to sign in as either a Global admin or a Billing admin.
· For Office 365 Small Business Premium, under users & groups, click Add users, reset passwords, and
For all other business and enterprise subscriptions, select Users > Active Users.
Select the name of the user or multiple users that you want to delete, and then do one of the following:
In the confirmation box, click Yes.