Microsoft 365 is making a big cut to your OneDrive storage perk

TL;DR

Microsoft is cutting the total OneDrive storage for Microsoft 365 Family and Premium subscribers from 6TB to a shared 2TB pool.
Solo subscribers could benefit from the change, but families using more than 2TB may need to delete files, move data, or pay for additional storage.
The new limits apply immediately to new subscribers, while existing customers will see the change after their first renewal on or after May 2, 2027.

Microsoft is taking away one of the biggest perks that came with subscribing to its Microsoft 365 Family or Premium plan. I personally do not have a subscription, though I have thought about paying for one in the past. Not because of the Copilot perks, or the Office apps that come bundled, but because of the generous OneDrive cloud storage. Unfortunately, Microsoft is changing how that storage perk works.

Up until recently, both Microsoft 365 Family and Premium plans have allowed users to share their subscription with five additional people, with each person receiving 1TB of personal OneDrive cloud storage. That equals a combined 6TB of storage for the entire household. The sharing will still go on. Nothing is changing on that front. However, the total amount of combined storage available is being slashed all the way down to 2TB, the company quietly announced in a support post.

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