Microsoft Bids Farewell to Skype, Shifts Focus to Teams

Microsoft has announced that it will discontinue Skype on May 5, 2025, marking the end of an era for the once-dominant video conferencing platform. The company is encouraging users to transition to Microsoft Teams, which will serve as its primary communication and collaboration tool moving forward.

“In an effort to streamline our free consumer communication services and better align with customer needs, we have made the decision to retire Skype in May 2025. Our focus will now be on Microsoft Teams, our modern communication hub,” Microsoft stated.

To ease the transition, Skype users will soon be able to log into Teams using their existing Skype credentials. Their chat history and contacts will automatically appear in Teams, initially available for early-access users before a broader rollout. Those who prefer not to switch can export their Skype data before the shutdown.

Additionally, new customers will no longer be able to make domestic or international calls via Skype using pay-as-you-go credit or subscriptions. However, existing subscribers can continue using their credits and plans until the end of their next renewal period. Skype Credit will remain accessible until May 5, though Microsoft has not confirmed whether unused funds will be refunded after that date.

The Rise and Fall of Skype

Skype was founded in 2003 by Niklas Zennström, Janus Friis, and a team of Estonian developers. The platform quickly gained popularity for its ability to provide free voice and video calls over the internet, bypassing traditional long-distance charges.

By 2005, the service had amassed 40 million active users and caught the attention of eBay, which acquired it for $2.6 billion. In 2011, Microsoft purchased Skype for $8.5 billion, integrating it into its suite of communication tools.

However, Skype struggled to keep up with competitors, particularly Zoom, which surged in popularity during the pandemic. The retirement of Skype for Business in 2021 signaled that the app’s days were numbered. Now, Microsoft is officially bringing its run to an end, shifting its full focus to Teams.