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Garry ShapeFlag for United States of America

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Skype for Business Online (with Azure AD Connect Sync) - contact list auto-updating?

I'm planning to deploy out Skype for Business Online Client to on-prem organization where they'll login using their O365 credentials.
My understand is that, as new users, they'll have contact lists pre-populated with their Manager and the manager's direct reports (their organization chart based co-workers based on AD attributes), is that correct?

If so, and they get a new manager and share different direct reports, will their old contacts go away? Or would it be the user's responsibility to clean up older, unnecessary contacts on an ongoing basis?
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Vasil Michev (MVP)
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Ok got it. So when they search, even if their mailbox is on-premises on the Exchange 2010 server, the S4B client will still search the O365 GAL?
Also since this is a school, but all users are of same domain and sync'd to O365, is there a way to separate students from seeing faculty? and/or vice versa?
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Sorry for the delay. EE doesn't make it easy for me to see my open questions.