In case if someone is still looking out for this, here is how you can go about this.
For disabling this only on Outlook Desktop Client you can push the below registry via GPO.( Some organizations do keep web apps disabled)
Remove Organization tab (admx.help)
However, this above would not meet the privacy concern as the information will still be visible to users on Outlook on the web and Delve. To completely disable the feature you can refer to the below.
Microsoft has now enabled the feature to be disabled by tenant admins:
Customizing people insights privacy in Microsoft Graph - Microsoft Graph | Microsoft Docs
Update insights - Microsoft Graph beta | Microsoft Docs
Note: Several other features might have dependecies on the 'Works with' feature and disabling this feature would also disable other dependencies, please refer the above articles for more information.
Note: These cmdlets will disable the feature for entire tenant. In case if you want to disable the feature only for a group of users you can use the cmdlets listed in update insights doc.
Install-Module Microsoft.Graph
Connect-MgGraph -Scopes "User.Read.All","User.ReadWrite.All","User.ReadWrite"
Select-MgProfile -Name "beta"
Import-Module Microsoft.Graph.Identity.DirectoryManagement
Get-MgOrganizationSettingItemInsight #to check for exisiting values
Update-MgOrganizationSettingItemInsight -OrganizationId "Tenant GUID" -IsEnabledInOrganization:$false
Get-MgOrganizationSettingItemInsight #to validate the change was successful.
If not aware, you can find the TenantGUID using the below:
Get-AzureADTenantDetail
The ObjectID is the tenant guid.
If you find IsEnabledInOrganization set to False, wait for 24 hours and check for the change.
