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15 min fix 4 min read Recently reviewedBeginner

By , IT support technician

Quick Answer

Log into the Microsoft 365 Admin Center. Go to Users > Active users. Click Add a user to create a new account, or select a departing user and click Delete user to remove their access.

How to Add or Remove Users in Microsoft 365 Admin Center ​

Estimated Time to Fix: 15 minutes

Applies to: Microsoft 365 Business
Article Type: How-To
Last Updated: 2026-07-21

Summary ​

When you hire a new employee or part ways with an old one, managing their IT access is critical. Adding a user gives them a professional email address and access to company files. Removing a user secures your company data and frees up a monthly license fee.

Prerequisites ​

  • You must have Global Admin or User Admin rights in your Microsoft 365 tenant.

Instructions ​

1. How to Add a New User ​

When you add a user, Microsoft creates their inbox, sets up their OneDrive, and assigns them a software license.

If this is your first visit to the portal and the left navigation looks overwhelming, Understanding the Microsoft 365 Admin Center for Non-IT Owners explains what each section is for before you start clicking.

  1. Sign in to the Microsoft 365 Admin Center.
  2. On the left menu, click Users > Active users.
  3. Click the Add a user button at the top of the list.
  4. Fill out the Basic info: First name, Last name, Display name, and the username (which will become their email address).
  5. For the password, you can let Microsoft auto-generate one, or you can create one yourself. Leave "Require this user to change their password when they first sign in" checked.
  6. Click Next.
  7. In the Product licenses section, select the license you want to assign them (e.g., Business Standard). If you don't have any available, it will tell you how much it costs to buy a new one.
  8. Click Next, skip the "Optional settings" by clicking Next again, and then click Finish adding.

2. How to Remove a Departing User ​

When someone leaves, you want to block their access immediately but preserve their email history and files.

  1. Go to Users > Active users.
  2. Find the person who is leaving and click on their name.
  3. In the flyout panel that appears, click the Delete user icon at the top (it looks like a trash can).
  4. The system will ask you what you want to do with their data:
    • Give another user access to their OneDrive: Check this box and select yourself or their manager. You will have 30 days to move their files before they are deleted.
    • Give another user access to their email: Check this box to convert their inbox into a Shared Mailbox. This allows you to still receive emails sent to their address without paying for their license.
  5. Check the box at the bottom that removes their assigned product license (this stops Microsoft from billing you for them next month).
  6. Click Delete user.

Troubleshooting ​

WARNING

If you delete a user but forget to uncheck their product license during the deletion wizard, Microsoft will continue to charge your credit card for that spare license every month until you manually cancel it in the Billing section.

Symptom / ErrorPotential CauseSolution
I don't see the "Users" tabLack of admin rightsYou are logged in with a standard user account. You must log in with an account that has Global Administrator privileges.
New user can't log inPassword typo or replication delayIt can take up to 15 minutes for a new account to become active. Ensure you sent them the correct temporary password.