diff --git a/cloud/webhooks.py b/cloud/webhooks.py
index e2b7711..3e5f78d 100644
--- a/cloud/webhooks.py
+++ b/cloud/webhooks.py
@@ -117,6 +117,10 @@ def insert_or_fetch_user(wh_payload: dict) -> typing.Optional[dict]:
         my_log.debug('found user %s', db_user['email'])
         return db_user
 
+    if wh_payload.get('date_deletion_requested'):
+        my_log.info('Received update for a deleted user %s, not creating', bid_str)
+        return None
+
     # Pretend to create the user, so that we can inspect the resulting
     # capabilities. This is more future-proof than looking at the list
     # of roles in the webhook payload.
@@ -181,6 +185,10 @@ def user_modified():
         my_log.info('Received update for unknown user %r', payload['old_email'])
         return '', 204
 
+    if payload.get('date_deletion_requested'):
+        delete_user(db_user, payload)
+        return '', 204
+
     # Use direct database updates to change the email and full name.
     # Also updates the db_user dict so that local_user below will have
     # the updated information.
@@ -219,3 +227,37 @@ def user_modified():
     subscription.do_update_subscription(local_user, payload)
 
     return '', 204
+
+
+def delete_user(db_user, payload):
+    """Handle deletion request coming from BID."""
+    my_log = log.getChild('delete_user')
+    date_deletion_requested = payload['date_deletion_requested']
+    bid_str = str(payload['id'])
+    local_id = db_user['_id']
+    my_log.info(
+        'User %s with BID=%s requested deletion on %s, soft-deleting the user',
+        local_id, bid_str, date_deletion_requested,
+    )
+    # Delete all session tokens linked to this user
+    token_coll = current_app.db('tokens')
+    delete_res = token_coll.delete_many({'user': local_id})
+    my_log.info('Deleted %s session tokens of user %s', delete_res.deleted_count, local_id)
+
+    # Soft-delete the user and clear their PII
+    users_coll = current_app.db('users')
+    updates = {
+        '_deleted': True,
+        'email': None,
+        'full_name': None,
+        'username': None,
+        'auth': [],
+    }
+    update_res = users_coll.update_one({'_id': local_id}, {'$set': updates})
+    if update_res.matched_count != 1:
+        my_log.error(
+            'Soft-deleted %s users %s with BID=%s',
+            update_res.matched_count, local_id, bid_str,
+        )
+    else:
+        my_log.warning('Soft-deleted user %s with BID=%s', local_id, bid_str)
diff --git a/tests/test_webhooks.py b/tests/test_webhooks.py
index 2594480..9619dbc 100644
--- a/tests/test_webhooks.py
+++ b/tests/test_webhooks.py
@@ -82,6 +82,29 @@ class UserModifiedTest(AbstractWebhookTest):
         self.assertEqual('ကြယ်ဆွတ်', db_user['full_name'])
         self.assertEqual(['subscriber'], db_user['roles'])
 
+    def test_date_deletion_requested_is_set(self):
+        payload = {'id': 1112333,
+                   'old_email': 'old@email.address',
+                   'full_name': 'ကြယ်ဆွတ်',
+                   'email': 'new.address+here-there@email.address',
+                   'roles': ['cloud_subscriber'],
+                   'date_deletion_requested': '2020-12-31T23:02:03+00:00'}
+        as_json = json.dumps(payload).encode()
+        mac = hmac.new(self.hmac_secret,
+                       as_json, hashlib.sha256)
+        self.post('/api/webhooks/user-modified',
+                  data=as_json,
+                  content_type='application/json',
+                  headers={'X-Webhook-HMAC': mac.hexdigest()},
+                  expected_status=204)
+
+        # Check the effect on the user
+        db_user = self.fetch_user_from_db(self.uid)
+        self.assertIsNone(db_user['email'])
+        self.assertIsNone(db_user['full_name'])
+        self.assertIsNone(db_user['username'])
+        self.assertTrue(db_user['_deleted'])
+
     def test_change_email_unknown_old(self):
         payload = {'id': 1112333,
                    'old_email': 'ancient@email.address',