After Two Decades, Microsoft Announces Skype Shut Down

Microsoft has officially announced plans to discontinue Skype, with the service set to go offline on May 5, 2025. The company will instead shift its focus to Microsoft Teams, which has become its primary communication and collaboration platform.

“The way we communicate has evolved significantly over the years. From instant messaging to video calls, technology has continuously transformed how we connect […] 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 stated.

As part of this transition, Skype’s phone calling feature — including domestic and international calls — will also be phased out. Users who rely on Skype Numbers will need to transfer them to another provider before the shutdown. However, Microsoft will maintain interoperability between Skype and Teams, allowing users to send messages between the two platforms.

To ease the migration, Microsoft will enable Skype users to sign in to Teams using their existing credentials or export their Skype data to use with another provider. Additionally, Microsoft is ending pay-as-you-go calling services for new customers while existing subscribers can use their remaining credits until their next renewal period. The company has not clarified whether users will receive refunds for unused balances.

Skype’s shutdown doesn’t come as a surprise. Originally developed in 2003, the platform quickly gained traction, reaching 40 million users by 2005, which led to eBay acquiring it for $2.6 billion. Microsoft later purchased Skype in 2011 for $8.5 billion, but over time, the platform struggled to maintain its dominance after the rise of competitors like Zoom and Slack.

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Microsoft’s introduction of Teams in 2017 as a direct competitor to Slack, also meant a gradual overshadowing of Skype. The platform became even more central to Microsoft’s ecosystem when it was made the default communication app for Windows 11. By December 2024, Microsoft had already stopped allowing Skype users to add credit or purchase new phone numbers, signaling its intent to phase out the platform completely.

Jeff Teper, president of Microsoft 365 collaborative apps and platforms, acknowledged the significance of 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 said. “At this point, putting all our focus behind Teams will let us give a simpler message and drive faster innovation”.