Users will need Full Write People permission to perform this task.
Users with this permission also have the Limited Read People and Limited Write People permission.
Locate the profile you want to modify. On the person's profile, select the header, noted as "Listed" or "Unlisted," beside the person's name
OR
The "Actions" button in the top right, and choose "Update Privacy Settings."
Finally, mark the Profile as "Unlisted" and save your changes.
Profiles can also be unlisted by custom criteria via the Directory Settings.
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