License & Subscription Issues

What Happens to Email When Downgrading Microsoft 365 E3 to E1

Maira Mehtab Sep 22, 2026 871 views

Question details

The user wants to know if their Exchange Online email will be deleted or affected when they cancel a Microsoft 365 E3 subscription and switch to an E1 subscription.

Product: Microsoft 365
Device & OS: not provided
Scenario: Downgrading an enterprise subscription plan from E3 to E1 while attempting to preserve existing email data.
Observed behavior: Email data is retained in Exchange Online as long as a qualifying E1 or Exchange Online Plan 1 license is assigned, but access to the Outlook desktop application is lost.

Before you start

Verify your current active subscriptions in the Microsoft 365 admin center to ensure you have enough E1 licenses to cover all users before removing their E3 licenses.

Solution 1Recommended

Assign an E1 License Before Removing E3

Ensure continuous email access and prevent data loss by assigning the new license before canceling the old one.

Downgrading from Microsoft 365 E3 to E1 will not delete your emails, provided the account retains a valid Exchange Online license. However, because E1 does not include the Outlook desktop app, users will need to transition to web or mobile clients.

Assign the E1 license to the user

Go to the Microsoft 365 admin center, navigate to Users > Active users, select the user, and check the box to assign the Office 365 E1 license.

Remove the E3 license

In the same user licensing pane, uncheck the Microsoft 365 E3 license and save your changes to seamlessly transition the mailbox.

Access email via Outlook on the web

Since E1 does not support the desktop Outlook client, instruct users to log in to Outlook on the web (OWA) or use the Outlook mobile app to access their emails.

Outlook Desktop App Limitation: Once the E3 license is removed, users will no longer be able to use the installed Outlook desktop application and will be prompted to activate with an eligible account.

Free Microsoft Office alternative

Lost Desktop Apps After Downgrading? Try WPS Office

Since downgrading to Microsoft 365 E1 removes access to the Microsoft Office desktop applications, you might be looking for a lightweight, cost-effective replacement. WPS Office provides a complete suite of desktop applications for Word, Excel, and PowerPoint files.

1. Download WPS Office: Visit the official WPS website and download the free desktop application for your operating system.
2. Install and Launch: Follow the simple installation wizard to set up the software, then open WPS Office.
3. Open Existing Office Files: Simply drag and drop your existing Word, Excel, or PowerPoint files into WPS Office to continue working smoothly without a Microsoft 365 desktop license.

Highly compatible with Microsoft Office formats (.docx, .xlsx, .pptx).Free and lightweight desktop applications for PC and Mac.Familiar user interface with no steep learning curve.Includes a powerful PDF toolkit for editing and converting files.

microsoft office alternative - wps office

Frequently Asked Questions

Do I need to back up my emails before moving from E3 to E1?

No, a manual backup is not strictly necessary if you assign the E1 license before removing the E3 license, as the Exchange Online mailbox remains intact. However, performing regular backups is always a recommended IT best practice.

Can I still use the Outlook desktop app with an E1 subscription?

No. The Office 365 E1 plan only includes web and mobile versions of Office apps. You will need to use Outlook on the web or the mobile app for your emails.

What happens to my Word and Excel desktop apps after downgrading to E1?

Similar to Outlook, you will lose access to the desktop versions of Word, Excel, and PowerPoint. You will only be able to use their web-based counterparts, or you can switch to a free desktop alternative like WPS Office.

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