Removal of Google Workspace Enterprise Licence from a user that has left the business

If I remove a Google Workspace Enterprise Licence from a user that has left my organisation will all of their historical data (eg. emails / google Drive) be deleted? 

Their physical user account will still be retained - just wanting to know what happens if I remove the Workspace licence... 

This is because we need to free up some licences but there is a potential risk that we may need access to the users email/google drive at a later date and so I figured we could just re-add the licence if we needed the data at a later date??

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Archived User licenses are designed for this purpose. To retain user data and the account after the individual has left for compliance / legal / policy purposes. That is the recommended approach for this situation.

One quick example, If you remove the user license, you remove their coverage for Vault, which is what applies retention policies to user data.

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