@Pradeep kumar Myakala (iCORE-CIS) Thanks for posting in our Q&A.
Based on my research, for this issue that remove license, it seems we can make it in Microsoft 365 admin center portal if you have a Global admin user.
https://learn.microsoft.com/en-us/microsoft-365/admin/manage/remove-licenses-from-users?view=o365-worldwide
Then we can assign licenses to another user.
https://learn.microsoft.com/en-us/microsoft-365/admin/manage/assign-licenses-to-users?view=o365-worldwide
Hope it will help.
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