Microsoft 365 users are encountering a widespread license deactivation error, locking them out of critical Office applications such as Word, Excel, and Outlook.
Despite having active subscriptions, users are seeing a banner notification that reads, “Your Microsoft 365 license will be deactivated soon.”
A prompt to “reactivate” is shown to users to continue using the Office suite. The error is causing disruptions and raising concerns among users who depend on these applications for their daily tasks.
Triggered by Administrative Changes
The root of the issue lies in changes made on the administrative side of Microsoft 365 accounts. According to Microsoft’s official support page, last updated on December 19, 2024, “any change made by the admin at licensing level might trigger the issue.”
These changes often involve modifications to user licensing configurations, such as moving users between groups in Azure Active Directory (Azure AD) or synchronized on-premises Active Directory.
Azure AD is Microsoft’s cloud-based identity and access management service, while on-premises Active Directory is a traditional, server-based directory service for managing network resources.
Specific Actions Lead to Deactivation
Several specific administrative actions can precipitate this error. Altering a user’s subscription type—for example, switching from an Office 365 E3 to a Microsoft 365 E3 subscription—can interfere with license validation.
Other actions, such as removing and re-adding users to license groups or adjusting individual user license or service plan settings, can also be responsible. Service plans define the set of capabilities and applications available to users within a subscription. Disabling the “Latest version of Desktop Apps” service plan is another potential trigger.
| Cause | Description |
|---|---|
| Changes in Licensing Groups | Moving users between different licensing groups, whether in Azure Active Directory or synced on-premises security groups, can cause the error. |
| Switching Subscription Types | Upgrading or downgrading your Microsoft 365 subscription (e.g., from Office 365 E3 to Microsoft 365 E3) can also trigger the error. |
| Modifying Service Plans | Making changes to service plan settings, such as toggling the “Latest version of Desktop Apps” option, can inadvertently affect license authorization. |
| Unnecessary Moves Between Groups | Repeatedly adding, removing, and re-adding users to license groups can confuse the authorization logic in Microsoft’s licensing system. |
| Incorrect Office Version | Having a different edition or version of Office installed than the one included in your subscription can cause activation errors. Ensure you have the correct version installed. |
Workaround
Users affected by this error have immediate recourse. Clicking the “Reactivate” button in the error banner prompts a sign-in process, typically restoring access.
Microsoft also suggests that users “Sign out and close all of your Microsoft 365 apps, including Outlook. Then restart your Microsoft 365 app and sign back in.” This can refresh the license status, resolving the error.
Microsoft’s engineering team is actively investigating the problem. Users who have opened support cases can aid the resolution process. They are encouraged to collect Office license diagnostic information using the Office Licensing Diagnostic Tool, downloadable from the Official Microsoft Download Center.
After gathering the logs from the %temp%/diagnostics directory, users should close all Office apps, zip the logs, and attach the file to their support case. Microsoft says, “For those that have support cases open, please collect the Office Logs and the file information below and share them with your support engineer.“
