Skype Bids Farewell as Microsoft Shifts Focus to Teams

After pioneering internet-based calling 23 years ago, Skype is officially shutting down. Microsoft, which acquired the platform 14 years ago, announced that Skype will be retired on May 5, 2025, as the company prioritizes Microsoft Teams.

Skype users have 10 weeks to decide their next steps. While it's unclear how many people will be affected, Microsoft last reported in 2023 that Skype had over 36 million users, a sharp decline from its peak of 300 million.

“We know this is a big deal for our Skype users, and we’re very grateful for their support. Over the last seven years, Skype has contributed significantly to Teams’ evolution,” said Jeff Teper, President of Microsoft 365 Collaborative Apps, in an interview with TechCrunch. “Focusing entirely on Teams allows us to simplify our messaging and drive faster innovation.”  

What’s Next for Skype Users?  

Between now and May 5, users can:  

- Migrate their contacts and chat history to Microsoft Teams.  

- Download their Skype data using the platform’s built-in export tool.

This decision won’t come as a surprise to those who have followed Skype’s decline. The writing was on the wall as early as 2016, when Microsoft launched Teams.  

How Skype Lost Its Place  

Although Microsoft introduced Skype for Business in 2015, the arrival of Teams a year later signaled a major shift. Many saw Teams as a Slack competitor, but Microsoft had bigger ambitions—building an all-in-one platform for messaging, video calls, and workplace collaboration. This put Teams in direct competition with Skype.

By 2017, Microsoft announced plans to phase out Skype for Business, completing the transition in 2021. That same year, Teams became the default communication app in Windows 11, pushing Skype further into obscurity. 

It was reported that Microsoft had stopped allowing Skype users to add credit or buy phone numbers, nudging them toward subscription-based calling plans instead.

Now, with Skype officially shutting down, its legacy as one of the first major European tech startups is coming to an end.

Teams Takes Over  

Microsoft has spent the last two years rolling out a completely rebuilt Teams desktop and web app. According to Teper, consumer calling minutes in Teams have grown fourfold  during this time, though Microsoft has not disclosed how many of its 320 million users are individuals rather than businesses.  

“We feel Teams is now at a scale where it’s ready for personal use,” Teper said. “We’ve been considering shutting down Skype for a while, but we wanted to make sure consumers were ready.”  

The Rise and Fall of Skype  

Skype revolutionized online communication, starting with voice calls, then expanding to video chat and file-sharing. However, the rise of smartphones and competing apps like WhatsApp (which surpassed 2 billion users in 2020) drastically reduced its market share.  

In 2010, Skype filed for an IPO, revealing 560 million registered users and 124 million monthly active users. But instead of going public, Microsoft acquired it for $8.5 billion in 2011, growing the platform to 300 million users by 2013.

Now, as Skype fades away, Microsoft is ensuring a smooth transition. Skype users can simply log into Teams with their existing credentials, and all contacts and chats will transfer automatically. The Skype app will continue working until May 5, 2025, after which it will be officially retired.  

The Bigger Picture  

Teper doesn’t see this transition as a major issue, noting that Microsoft products often serve both business and personal users.  

“Many people will make the switch,” he said. “Just like Word, Excel, and PowerPoint are used for both work and personal tasks, Teams can fit into people’s lives the same way.”

Skype may be gone, but its legacy lives on in Teams, marking the end of an era in internet communication.