I'm also not a genius at this, but the cost of 1-5 extra 365 accounts per office with any sort of turnover saved our company onboarding time and money because we could start someone fresh while IT archived and reset the old account.
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Yep I have about 30 extra licenses so I can onboard new staff and keep former employee mailboxes during a transition, also to deal with litigation holds. Elon is (contrary to Nate Silver and Matt Yglesias) an idiot
Yep, this is absolutely it. We (I work in tech) keep a comfortable number of overflow licenses so that we never find ourselves accidentally in contract violation when the employee population fluctuates.
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It's a house of cards best avoided.