Bulk remove licenses for a list of users via the Azure AD PowerShell module

AAD_user_remove_all_licenses.ps1

$users = Import-Csv .\Users-to-disable.csv
 
foreach ($user in $users) {
  Write-Verbose "Processing licenses for user $($user.UserPrincipalName)"
  try { $user = Get-AzureADUser -ObjectId $user.UserPrincipalName -ErrorAction Stop }
  catch { continue }
 
  $SKUs = @($user.AssignedLicenses)
  if (!$SKUs) { Write-Verbose "No Licenses found for user $($user.UserPrincipalName), skipping..." ; continue }
 
  $userLicenses = New-Object -TypeName Microsoft.Open.AzureAD.Model.AssignedLicenses
  foreach ($SKU in $SKUs) {
  $userLicenses.RemoveLicenses += $SKU.SkuId
  }
 
  Write-Verbose "Removing license(s) $($userLicenses.RemoveLicenses -join ",") from user $($user.UserPrincipalName)"
  try {
    Set-AzureADUserLicense -ObjectId $user.ObjectId -AssignedLicenses $userLicenses -ErrorAction Stop
  }
  catch {
    if ($_.Exception.ErrorContent.Message.Value -eq "User license is inherited from a group membership and it cannot be removed directly from the user.") {
      Write-Verbose "At least one of the user's licenses is assigned via group-based licensing feature, use the Azure AD blade to remove it"
      continue
    }
    else {$_ | fl * -Force; continue} #catch-all for any unhandled errors
  }
}