Microsoft Announces Shutdown of Skype, Pioneering Internet Communication Service, to Focus on Teams Integration

REDMOND, Wash. — March 1, 2025 — Microsoft Corporation today confirmed the impending closure of Skype, the trailblazing voice-over-internet (VoIP) service that revolutionized global communication since its 2003 launch. Effective May 5, 2025, Skype will cease operations, marking the end of its 21-year legacy. Users are encouraged to transition to Microsoft Teams, the company’s unified communication platform, which now integrates Skype’s core functionalities and offers enhanced collaboration tools.

Transition Plan and User Support
During the transition period, Skype users can seamlessly migrate their accounts, contacts, and chat history to Teams using existing credentials. Microsoft will also enable interoperability between Skype and Teams until the shutdown date, allowing cross-platform communication. Additionally, users may export their Skype data for archival purposes. Paid Skype subscriptions will no longer be available, though existing credits will remain usable within Teams.

Strategic Shift to Teams
Jeff Teper, President of Microsoft 365 Collaboration Apps, emphasized that the decision reflects the company’s commitment to streamlining its product portfolio and accelerating innovation in AI-driven tools. “Skype laid the foundation for modern digital communication, but Teams has evolved into a comprehensive solution for both personal and professional use,” Teper stated. Teams now boasts over 320 million users, driven by pandemic-era remote work demands and deep integration with Office 365.

Skype’s Rise and Challenges
Launched in Estonia by Janus Friis and Niklas Zennström, Skype democratized free global calls via peer-to-peer VoIP technology. Its rapid growth attracted eBay’s $2.6 billion acquisition in 2005, followed by Microsoft’s $8.5 billion purchase in 2011. At its peak in 2016, Skype served 300 million monthly active users, but competition from Apple’s FaceTime, WhatsApp, and Zoom eroded its dominance. By 2023, daily active users had dwindled to 36 million.

Despite efforts to modernize its interface, Skype struggled to adapt to mobile-first trends and cloud-based collaboration, while Microsoft prioritized Teams’ development as a Slack and Zoom competitor.

Legacy and Industry Impact
Skype’s closure signifies a pivotal shift in communication technology, underscoring the rise of mobile and cloud ecosystems. “Skype pioneered internet audio and video calls for millions, and we honor its role in shaping how the world connects,” Teper remarked. Employees previously dedicated to Skype will transition to other Microsoft projects, with no layoffs anticipated.

User Sentiment and Farewell
For many, Skype remains a nostalgic symbol of early internet innovation, enabling cross-border conversations and familial bonds. Its retirement has sparked reflections on its cultural impact, even as users embrace Teams’ advanced features.

Microsoft assures continued support for Skype users through the transition, reinforcing its vision of “empowering every person and organization to achieve more.