End of an Era: Microsoft to Retire Skype on May 5, 2025
After pioneering internet-based calls for over two decades, Skype is officially shutting down. Microsoft, which acquired Skype in 2011 for $8.5 billion, has announced that the app will be discontinued on May 5, 2025, as the company shifts its focus to Microsoft Teams.
With just ten weeks left, Skype users must decide whether to migrate to Teams or download their chat history before the service is permanently retired.
Why is Microsoft Shutting Down Skype?
Skype’s decline has been evident for years, especially after Microsoft introduced Teams in 2016. Despite Skype for Business launching in 2015, Teams quickly became Microsoft’s preferred communication tool, integrating workplace collaboration features.
Key milestones in Skype’s phase-out:
- 2017: Microsoft announced plans to discontinue Skype for Business.
- 2021: Teams replaced Skype as the default communication tool in Windows 11.
- December 2024: Microsoft stopped allowing users to add Skype credit or buy Skype phone numbers, signaling its eventual shutdown.
With Teams seeing rapid adoption, Microsoft now believes consumers are ready to transition away from Skype entirely.
What Happens to Skype Users?
Migration to Microsoft Teams
Skype users will have the option to move their contacts and chat history to Teams Free. To transition:
- Download the Microsoft Teams app.
- Log in using Skype credentials.
- All existing chats and contacts will be automatically transferred.
Downloading Skype Data
Users who prefer not to migrate can export their chat history and contacts using Skype’s built-in export tool. However, this data won’t be importable to alternative services.
What About Skype Phone Calls?
One major drawback of Teams Free is the lack of phone-calling functionality (PSTN services), a key feature that allowed Skype users to call mobile and landline numbers. While enterprise Teams versions still support PSTN, Microsoft has no plans to introduce this feature in Teams Free.
To address existing credit balances:
- Microsoft will provide a Skype Dial Pad via the Skype web portal and Teams.
- Users can continue making calls until their credit runs out.
- Monthly Skype subscriptions will end on April 3, 2025.
The Rise and Fall of Skype
SEE ALSO: Microsoft Teams to Block Unsupported OS Users by January 2025: What You Need to Know
Skype’s Early Success
Founded in 2003, Skype revolutionized internet-based communication, allowing free voice and video calls. It grew rapidly:
- 2010: Skype filed for an IPO, revealing 124 million active users.
- 2011: Microsoft acquired Skype for $8.5 billion.
- 2013: Skype peaked at 300 million users.
Decline in User Numbers
Despite its early success, Skype struggled to compete with newer messaging apps. By 2023, its daily user count had dwindled to 36 million—a fraction of WhatsApp’s 2 billion+ users. The COVID-19 pandemic briefly revived Skype usage, but competitors like Zoom, WhatsApp, and Microsoft Teams overshadowed its growth.
Why Microsoft is Betting on Teams
Microsoft has been gradually shifting all communication features into Teams, which now boasts 320 million users. The company states that:
- Teams Free provides enhanced collaboration features, including calendar integrations and file sharing.
- Teams has seen a fourfold increase in consumer call minutes since its 2023 redesign.
- Users no longer rely on landline and mobile calls as much, reducing the need for Skype’s phone features.
What’s Next for Users?
For Skype users, the transition period is short, with May 5, 2025, marking the final shutdown. After this date, user data will be stored until the end of the year, after which it will be permanently deleted.
Microsoft encourages users to move to Teams Free, offering a modernized experience but with some missing features. Those who rely on Skype’s phone-calling capabilities will need to explore alternative solutions.
The end of Skype marks the conclusion of an internet era, as Microsoft fully embraces the future of digital communication with Teams.
