Microsoft to Shut Down Skype on May 5, 2025

After 23 years of pioneering internet-based calls, Skype is shutting down. Microsoft, which acquired the messaging and calling app 14 years ago, has announced that Skype will officially retire on May 5, as the company shifts its focus entirely to Microsoft Teams. Skype users now have 10 weeks to decide what to do with their accounts.

It remains unclear how many users will be affected. The last official data from Microsoft in 2023 indicated that Skype had over 36 million users—far from its peak of 300 million.

Microsoft’s Shift to Teams

Jeff Teper, President of Microsoft 365 Apps and Platforms, acknowledged the impact of this decision on users, expressing gratitude for Skype’s role over the years. He stated that focusing entirely on Teams would streamline messaging and accelerate innovation.

Between now and May 5, users can migrate their contacts and chat history to Microsoft Teams. Alternatively, they can use Skype’s built-in export tool to download their data.

The Decline of Skype

For those following Skype’s trajectory, this news may not come as a surprise. The writing has been on the wall since 2016, when Microsoft launched Teams.

Although Microsoft introduced a dedicated Skype for Business product in 2015, the arrival of Teams marked a shift in its cloud communication strategy. Many initially viewed Teams as a Slack competitor, but its broader goal was to integrate communication and collaboration across Microsoft apps, including video and text chat—directly overlapping with Skype.

In 2017, Microsoft announced plans to phase out Skype for Business, completing the transition by 2021. That same year, Windows 11 integrated Teams as the default communication app, pushing Skype further into the background.

By December 2024, Microsoft had stopped allowing users to add Skype credit or purchase new Skype phone numbers, signaling its gradual shutdown.

A Changing Communication Landscape

Skype revolutionized internet communication, from voice calls to video and file sharing. However, the rise of smartphones and competing messaging apps significantly impacted its user base. By 2020, WhatsApp had surpassed 2 billion users.

When Skype filed for an IPO in 2010, it reported 560 million registered users and 124 million monthly active users. However, instead of going public, Microsoft acquired Skype for $8.5 billion in 2011 and expanded its user base to 300 million by 2013.

Microsoft has rarely disclosed Skype’s user numbers in recent years. However, in early 2020, during the COVID-19 pandemic, the company reported a 70% increase in Skype usage, reaching 40 million daily users. Despite this temporary surge, competing platforms like Zoom experienced even greater growth.

By early 2023, Microsoft revealed in a blog post that over 36 million people were still using Skype daily for calls and chats. However, as Teams continued to grow, Skype’s stagnant user base contributed to Microsoft’s decision to fully transition to Teams.

The Transition Process

Microsoft is encouraging users to switch to Teams Free, which offers additional features like calendar integration. However, Teams Free lacks some key Skype functionalities, including the ability to make calls to mobile and landline numbers.

Users with existing Skype credit will be able to use the Skype dial pad on the web or in Teams indefinitely, as long as they have remaining credit. However, Microsoft confirmed that Teams Free will not support public switched telephone network (PSTN) services, reflecting changing user habits.

During the transition period, Skype users can log into Teams with their existing credentials, automatically transferring their chats and contacts. Skype itself will remain functional until May 5, 2025.

Users who take no action by May 5 will have their data retained until the end of the year, after which it will be permanently deleted.

A Shift in Communication Trends

Skype started as a consumer-focused platform that gained popularity in the business world, while Teams began as a corporate tool that later expanded to personal use. However, Teams still carries a business-oriented branding—raising questions about whether users will see it as a natural replacement for Skype.

Teper, however, is confident about the transition. He pointed out that many Microsoft tools, such as Word and Excel, are already used seamlessly across both personal and professional settings.

“We believe many users will make the switch,” he said. “Just like Word, Excel, and PowerPoint serve both business and personal needs, we see Teams evolving in the same way.”

With this transition, Microsoft believes that users are now ready to fully embrace Teams as their go-to communication platform.