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Microsoft Cuts 4TB From Microsoft 365 Family Storage

The company is switching Family and Premium plans to a shared OneDrive pool that reduces total storage with no price cut.

Overview

  • Microsoft updated a support document to remove 4TB of OneDrive storage from Microsoft 365 Family plans and to describe a move to a shared storage pool for Family and Premium subscribers.
  • New and upgraded Microsoft 365 subscriptions can be placed on the shared pool immediately while existing subscribers are moved when their subscription renews on or after May 2, 2027 unless they change to an eligible plan earlier.
  • The change keeps plan prices the same and therefore lowers the raw storage value of the Family plan for many households that previously relied on the larger allotment.
  • Users and outlets are reporting strong consumer backlash and some subscribers say they will cancel; short-term workarounds being discussed include confirming renewal dates with Microsoft or stacking pre‑paid time to delay the transition.
  • The cut follows Microsoft’s January 2025 price rise and frequent discounted offers that many used to preserve value, which makes this reduction likely to prompt customers to compare alternatives for family cloud storage.