News: Free storage is reduced from 15GB to 5GB.
Office 365 Home, Personal and University subscribers will no longer have access to unlimited storage. The users will now be limited to 1TB of storage.
The company is removing 100GB and 200GB plans for new users and replacing them with a 50GB plan for $1.99 a month.
Free storage is being reduced from 15GB to 5GB for all users. The 15GB camera roll storage bonus is also being eliminated.
All the changes will be effective from early 2016.
The decision to cut down the storage capacity was taken as a few customers were using 75TB of cloud storage from a single account.
Microsoft said: "Since starting to roll out unlimited cloud storage to Office 365 consumer subscribers, a small number of users backed up numerous PCs and stored entire movie collections and DVR recordings. In some instances, this exceeded 75 TB per user or 14,000 times the average.
"Instead of focusing on extreme backup scenarios, we want to remain focused on delivering high-value productivity and collaboration experiences that benefit the majority of OneDrive users."
Free users who are over 5GB of storage and affected by the change are eligible for a free one-year subscription to Office 365 Personal.