Microsoft has announced that it will officially “hang up” on Skype, shutting down the once-popular video calling service on May 5, and will instead shift its focus to switch to Microsoft Teams, which has become its primary communication platform.
“The way we communicate has evolved significantly over the years. From instant messaging to video calls, technology has continuously transformed how we connect with each other. In order to streamline our free consumer communications offerings so we can more easily adapt to customer needs, we will be retiring Skype in May 2025 to focus on Microsoft Teams, our modern communications and collaboration hub,” Microsoft said in a statement. The company is also pulling the plug on Skype’s ability to make domestic and international phone calls. Users with Skype Numbers will need to transfer them to another provider, as Microsoft will no longer support this feature. For now, Skype users will still be able to send messages between Skype and Teams.
To help with the transition, Microsoft will allow Skype users to sign in to Teams using their existing credentials. Once they are logged in, they will have access to their Skype chat history and contacts within Teams. This feature will first be available to select users before expanding to the general public. Users who do not want to switch to Teams will have the option to export their Skype data. Microsoft is also ending its pay-as-you-go calling services for new customers. Existing subscribers can continue using their credits and subscriptions until the end of their next renewal period, but Microsoft has not confirmed whether refunds will be available for any remaining balances after the shutdown.
This development is hardly unexpected, given that the glory days of Skype are long past. It has been over two decades since it was launched by a group of developers led by Niklas Zennström and Janus Friis. At that time, the service gained popularity for allowing free internet-based voice and video calls. By 2005, it had 40 million users and was acquired by eBay for $2.6 billion.
Microsoft later bought Skype in 2011 for $8.5 billion. Over time, however, its early success was overshadowed by its efforts to keep up with its competitors, and the pandemic saw users shift to the likes of Zoom and Slack (and Microsoft focussed more on its Teams). Later, in 2021, the tech behemoth pulled the plug on Skype for Business, signaling the eventual phase-out of the platform.
As for Teams, it was introduced nearly a decade ago as a competitor to Slack, integrating messaging, video conferencing, and productivity tools. Over time, Teams became Microsoft’s preferred communication platform, particularly after it was made the default app for Windows 11. By December 2024, Microsoft had stopped allowing Skype users to add credit or buy new phone numbers, signaling a shift away from the platform. Jeff Teper, president of Microsoft 365 collaborative apps and platforms, explained the decision. “We know this is a big deal for our Skype users, and we’re very grateful for their support of Skype and all the learnings that have factored into Teams over the last seven years,” he commented on the matter. “At this point, putting all our focus behind Teams will let us give a simpler message and drive faster innovation.”
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