To change Office 365 sign-in (Principal) name for user synced with Onsite AD:
- Start PowerShell
- Make sure the Microsoft Online module is loaded
- Execute the following command:
set-msoluserprincipalname -newuserprincipalname newuser@emailaddress.com -userprincipalname user@emailaddress.com.
Source:
msonlinehelpdesk.zendesk.com