Outlook Maximum Number of Folders
The maximum number of folders in Outlook 2016 connected to O365 Exchange is currently limited to 500 for optimal performance. Users are able to continue creating folders and then face slowness and poor performance. So please consider the below features for future versions:
1. There should be a warning message pop up or alert created when number of folders is exceeded.
2. The limit of the number of folders should be increased from 500 to 5000 minimum
3. Users should receive an alert that they should archive their email or reduce their mailbox size instead of waiting for it to accumulate.

With the May release for our Monthly Office 365 subscription customers, this is now resolved! This will be included in our Semi-Annual targeted and standard releases in July and January respectively.
3 comments
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Roel Niesen commented
When will this been fixed in Outlook 2016 or Outlook 2019 VLK?
This can not been difficult because the source code is already there and it's a bug not a feature.
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Joanne Barth commented
I will have to say; working in an administrative position it’s difficult. Companies are switching to a paperless-office; and with that comes the responsibility of having to store every information via outlook and also saving these messages on to servers in the folders.
Currently I have to work between outlook windows and outlook online in order to see my new projects and also the the newer e-mails to a project because the windows version just stops working.
Whereas the office online makes it difficult to work from 3 different generic as well as my own - as you can’t move e-Mails from the one postbox to the other. You also can‘t download the message as a .msg file to save to the server folder of the article for later access of an assistant/backoffice colleague.
Very much would appreciate a change!
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Alex commented
It seems that not a lot of people have the issue with this - Unfortunately every company I worked for I run into same issue. Users having 2500 folders and reporting missing emails, crashing outlook and different email issues. This limit is quite old and as currently exchange online supports 10 000 folders it would be natural to raise this limit as well.