Summary:
- Microsoft will shut down Skype on May 5, 2025, ending its 23-year run to focus entirely on its newer communication platform, Microsoft Teams.
- Skype users can migrate their data and contacts to Teams or export them before the shutdown; Teams Free will serve as the alternative for personal use.
- Skype’s decline stems from competition with apps like WhatsApp and Microsoft’s strategic shift to Teams, which now has over 320 million users globally.
- Some Skype features, like phone-call functionality, will not fully transition to Teams Free, but legacy users with credit can still make calls via a dedicated dial pad.
Microsoft has announced it will officially retire Skype, the pioneering internet-based calling and messaging platform, on May 5, 2025, after more than two decades of operation. The decision comes as the tech giant shifts its focus entirely to Microsoft Teams, its newer collaboration and communication platform.
Skype users have until the shutdown date to migrate their data and contacts to Teams or export their information using Skype’s built-in tools. The move marks the end of an era for a service that once revolutionized online communication but has seen declining usage in recent years.
“We know this is a big deal for our Skype users, and we’re very grateful for their support,” said Jeff Teper, president of Microsoft 365 collaborative apps and platforms. “At this point, putting all our focus behind Teams will let us give a simpler message and drive faster innovation.”
Declining User Base
Skype, which was acquired by Microsoft in 2011 for $8.5 billion, has seen its user base dwindle over the years. At its peak in 2013, Skype boasted 300 million active users, but by early 2023, that number had dropped to just 36 million daily users, according to Microsoft.
The rise of smartphones and competing messaging apps like WhatsApp, which surpassed 2 billion users in 2020, contributed to Skype’s decline. Microsoft’s own introduction of Teams in 2016 further signaled a shift in strategy.
From Skype to Teams
Microsoft has been gradually phasing out Skype’s features in favor of Teams. In December 2024, the company stopped allowing users to add credit or purchase Skype phone numbers, pushing them toward subscription-based plans instead. Teams has since grown rapidly, with consumer calling minutes increasing fourfold over the past two years, according to Teper.
Users can log into Teams with their Skype credentials during the transition period, with all chats and contacts migrating automatically. For those who choose not to act by May 5, Microsoft will retain user data until the end of 2025 before permanently deleting it.
A Shift in Communication Trends
Skype’s shutdown reflects broader changes in how people communicate online. While Skype initially gained popularity for its ability to make voice and video calls over the internet, newer platforms like Teams offer integrated collaboration tools that cater to both personal and professional use cases.
Despite this shift, some features unique to Skype—such as its ability to call mobile and landline numbers—will not be fully replicated in Teams Free, Microsoft’s consumer-focused version of the app. Users with remaining Skype credit will still be able to make phone calls through a dedicated dial pad available on both the Skype web portal and Teams for an indefinite period.
“We’ve been looking at usage of telephony for a while on Skype, and patterns have changed,” said Amit Fulay, Microsoft’s VP of product. “People have mobile data plans now… this is a step towards that.”
Legacy and Future
Skype was one of the first major tech startups to emerge from Europe during the early days of internet communication. Launched in 2003, it introduced millions of users worldwide to voice-over-IP (VoIP) technology before expanding into video calls and file sharing.
However, as Microsoft doubles down on Teams—now boasting 320 million users globally—the company believes it is time for consumers to embrace what it sees as a more versatile platform. “We feel we have the mileage under our belt,” Teper said. “The feedback was such that we could make the move.”
For many longtime users, Skype’s closure marks the end of an iconic brand that helped shape modern communication trends. As Microsoft looks ahead, it remains focused on integrating personal and professional tools under its unified Teams platform.
