In my opinion, this is rather stupid and I hope Microsoft changes their policies on that soon. He said they (Microsoft) are the only ones that can remove Office 365 licenses from the account, system administrators can’t even remove them. Once I was on the phone with Microsoft, I asked if there was a way that I could remove the license myself. They will remove the extra license for you. If you are a Microsoft Partner call this number 1-80 and select the cloud services option. Here is the link for their customer support number. If you meet the criteria, you need to call Microsoft Technical support in your area. Click “ change quantity” and then remove or add licenses!! Thanks Microsoft, you made our job easier. You will then see a “change quantity” beside the current amount of user licenses. When you log into your account click on Billing > Subscriptions and click on the subscription you want to change. Update 6/9/14 : Apparently Microsoft must have gotten tired of all the phone support and listened to us!! They now have a remove license option as well.

Here are the steps to remove the unused Office 365 license. Finally I ran across this helpful forum post on how to remove extra Office 365 licenses. I could not find how to remove the extra license. So I started to dig around in the settings, trying to find a way to delete the extra license.

After the upgrade was completed, I was left set with one extra Office 365 license. Today I upgraded one of our Office 365 customers from Microsoft Exchange (Plan 2) to the Office 365 Enterprise E3 plan.

Remove office 365 license