After more than two decades of pioneering internet-based communication, Skype is set to be discontinued. Microsoft, which acquired the video and voice calling platform 14 years ago, has officially announced that Skype will be retired on May 5, 2025, as the company shifts its focus entirely to Microsoft Teams. Users now have just over two months to decide how they want to proceed with their accounts.
The exact number of affected users remains unclear. The most recent data shared by Microsoft in early 2023 indicated that more than 36 million people were using Skype daily—significantly lower than its peak of 300 million users in 2013.
A Strategic Shift to Teams
“We know this is a big change for our Skype users, and we deeply appreciate their support over the years,” said Jeff Teper, President of Microsoft 365 Collaborative Apps and Platforms, in an interview with TechCrunch. “Focusing entirely on Teams allows us to streamline our efforts and drive innovation at a faster pace.”
Between now and the shutdown date, users will have the option to migrate their contacts and chat data to Teams or export their Skype data for offline storage.
The End of an Era for Skype
For those who have followed Skype’s trajectory, the announcement comes as little surprise. The writing had been on the wall since 2016, when Microsoft launched Teams. While the company had introduced a separate Skype for Business service in 2015, the debut of Teams signaled a broader shift toward a unified platform for workplace collaboration and communication.
Microsoft formally announced plans to phase out Skype for Business in 2017, completing that process in 2021. That same year, the company solidified Teams as its preferred communication app by integrating it into Windows 11, pushing Skype further into the background.
By December 2024, reports surfaced that Microsoft had stopped allowing users to add Skype credit or purchase new Skype phone numbers, a move that hinted at the eventual discontinuation of the service.
Why Now?
Skype’s gradual decline in relevance can be attributed to the rise of smartphones and competing messaging platforms. For context, WhatsApp surpassed 2 billion users in 2020, dwarfing Skype’s user base.
When Skype filed for an IPO in 2010, it boasted 560 million registered users and 124 million monthly active users. However, rather than proceeding with its public offering, the company was acquired by Microsoft for $8.5 billion in 2011. Microsoft successfully grew Skype’s user base to its 300 million peak in 2013 but stopped breaking out Skype user numbers in subsequent years.
At the height of the pandemic in March 2020, Microsoft reported a 70% month-over-month increase in Skype usage, with 40 million daily active users—a surge driven by global lockdowns. But as video conferencing apps like Zoom gained momentum, Skype failed to maintain its position as the go-to platform for virtual communication.
Now, as Teams continues to expand, Microsoft sees this as the right time to retire Skype. “Skype experienced a bump in usage during the pandemic, much like Teams, but it has remained relatively stable in recent years,” Teper explained. “With the adoption of Teams growing, we felt the time was right.”
Transitioning to Teams
Microsoft is urging users to switch to Teams Free, which includes additional features such as calendar integrations. However, it does lack some hallmark Skype features—most notably, the ability to make and receive phone calls using a Skype phone number.
Microsoft began phasing out these telephony services in December 2024, preventing users from adding credit or purchasing new Skype numbers. Existing Skype credit holders will still be able to make calls using a dedicated Skype Dial Pad, which will be accessible both via the Skype web portal and within Teams. However, Microsoft will not integrate full phone-calling capabilities into Teams Free.
“We’ve closely monitored telephony usage on Skype, and consumer behaviors have changed,” said Amit Fulay, Microsoft’s Vice President of Product. “With the prevalence of mobile data plans, traditional phone-calling features are no longer as essential as they once were.”
Data Migration & Final Steps
During the transition period, Skype users can log into Teams with their existing credentials, with contacts and chats migrating automatically. Alternatively, they can export their data for personal storage, though there may be limited options for importing it elsewhere.
“We want to ensure that our users don’t lose their contacts or shared memories,” Fulay added. “For those who move to Teams, their data will be seamlessly restored.”
If no action is taken before May 5, 2025, Microsoft will retain Skype user data until the end of the year, after which it will be permanently deleted.
The Changing Landscape of Communication
Skype’s story highlights the blurring lines between consumer and business communication. While Skype started as a consumer-focused product that expanded into the business world, Teams took the opposite path—launching as a business tool before evolving to accommodate personal use.
Despite this, some skeptics question whether “Teams” is a fitting name for a personal communication app. “Do friends and families really think of themselves as part of a ‘team’ when chatting online?” one analyst mused.
However, Teper remains confident in the brand’s adaptability. “Many of our products, like Word and Excel, serve both business and personal needs,” he noted. “We believe that many users will make the transition seamlessly.”
With Skype’s impending shutdown, an era of internet communication comes to an end. But for Microsoft, the future lies in a Teams-centric world—and the company believes its users are ready to move forward.
