Microsoft has announced that it will stop Skype internet calling service on May 5, 2025 as it struggled to compete with platforms such as Zoom and Slack.
The decision is part of Microsoft’s strategy to streamline its communication offerings and focus on its Teams platform. Microsoft’s Teams platform has gained significant traction in corporate and personal communication.
Skype, founded in 2003, revolutionized long-distance communication by enabling free audio and video calls over the internet. Microsoft, which acquired Skype in 2011 for $8.5 billion, has been gradually shifting its focus toward Teams, particularly as remote work and online collaboration have become more prevalent.
Microsoft declined to share the latest user figures for Skype. Microsoft said there would be no job cuts due to the move. Microsoft Teams has about 320 million monthly active users. When Microsoft bought Skype in 2011 for $8.5 billion after outbidding Google and Facebook, the service had around 150 million monthly users; by 2020, that number had fallen to roughly 23 million, Reuters news report said.
The decline of Skype can be attributed in part to its outdated underlying technology, which was not optimized for the smartphone era. When the demand for remote communication surged during the COVID-19 pandemic, Microsoft heavily invested in Teams, integrating it with its Office suite to cater to businesses and organizations.
Skype users will be able to log into Teams for free using their existing credentials. Their chats and contacts will migrate automatically, allowing them to continue conversations without disruption. During the transition period, Skype and Teams users will still be able to communicate with each other across platforms.
For those who do not wish to move to Teams, Microsoft is providing an option to export Skype data, including chats, contacts, and call history. Skype will remain available until May 5, 2025, allowing users ample time to explore Teams or alternative communication platforms, Microsoft said in a blog post.
Microsoft is discontinuing paid Skype services, including Skype Credit and subscriptions for domestic and international calls. Existing paid users will be able to continue using their Skype Credits and subscriptions until their renewal periods end. After May 5, 2025, the Skype Dial Pad will be accessible through the Skype web portal and within Teams.
This move aligns Skype with other Microsoft projects that have been phased out over time, such as Internet Explorer and Windows Phone. Despite its historic impact on digital communication, Skype’s retirement underscores the innovation in online connectivity and Microsoft’s shift toward a more integrated, modern communication ecosystem with Teams.
Baburajan Kizhakedath
