Use the new admin center to remove licenses from multiple users
The new admin center is available to all Microsoft 365 admins. You can opt in by selecting the Try the new admin center toggle located at the top of the Home page.
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In the admin center, go to the Users > Active users page.
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Select the circles next to the names of the users you want to unassign licenses for.
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At the top, select More options (...), then select Manage product licenses.
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In the Manage product licenses pane, select Replace existing product license assignments > Next.
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At the bottom of the Replace existing products pane, select the Remove all product licenses from the selected users check box, then select Replace > Close.
Use the old admin center to unassign licenses for multiple users
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In the admin center, go to the Users > Active users page.
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Select the boxes next to the names of the users you want to unassign all licenses for.
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In the Bulk actions pane, select Edit product licenses.
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In the Replace existing products pane, select Replace existing product license assignments> Next.
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At the bottom of the Replace existing products pane, select the Remove all product licenses from the selected users check box, then select Replace > Close > Close.