Reduce Microsoft 365 licenses

How to downsize a Microsoft 365 subscription.

This tutorial explains how to reduce the quantity of your licenses in a subscription by submitting a change order. If you want to cancel the subscription completely, see Terminate 365 subscription.

Downsizing a subscription reduces the number of licenses while keeping at least one license active.

Prerequisites

Ensure that both the agreement and the subscription you want to downsize are active.

Reduce licenses for a Microsoft 365 subscription

1

Open the subscription

To open the subscription:

1. Go to Marketplace > Subscriptions.

2. Select the subscription you want to downsize.

3. On the subscription details page, select Edit.

2

Reduce the quantity and submit the change order

In the guided Edit subscription flow, complete the following steps:

1. Items – Under New qty, reduce the quantity, then select Next.

2. Details – Add or update the reference details, then select Next.

3. Review – Review the order details and terms and conditions, then select Place order.

4. Summary – Review your order summary. Select View details to open the order details page or select Close.

Next steps

Your change order is submitted to SoftwareOne for processing.

In the Marketplace, the subscription and agreement status change from Active to Updating. While the order is being processed, you cannot make additional changes to the subscription.

• If the license reduction is requested within 7 days of the original order, the change is applied in both the Marketplace and Microsoft.

• If the license reduction is requested outside the 7-day window, the change is applied on the renewal date. If you do not want the subscription to renew, disable auto-renewal so that the subscription expires at the end of the commitment period.

Related tasks

Buy Microsoft 365 subscription for a new tenantBuy Microsoft 365 subscription for an existing tenantAdd new items to an agreementPurchase additional Microsoft 365 licensesTerminate Microsoft 365 agreementTerminate Microsoft 365 subscriptionDisable automatic renewal