Here are the steps on how to remove a team:

Navigate to the admin panel. Only users with admin permission will be able to see the admin link.

Select "Teams" in the left panel.

Select the row of the team to be removed, then click the "Action icon" to reveal the options

Click the "Change Status" option

This will change the status of the team to active or deactivated based on their current status, you will see the confirmation notification and the status icon will change in the table.

Once a team is deactivated, it will no longer appear in the lookup lists for users.