After more than two decades of connecting people around the world, Microsoft has announced the shutdown of Skype in May 2025. The move signals the end of an era for the pioneering voice and video calling platform, which has struggled to remain competitive against newer messaging services.
Microsoft acquired Skype in 2011 for $8.5 billion, with hopes of making it a dominant force in digital communication. However, with the rise of platforms like Zoom, WhatsApp, and Microsoft’s own Teams, Skype gradually lost its stronghold in the market.
Jeff Teper, President of Microsoft 365 Collaborative Apps and Platforms, confirmed the decision in an interview with CNBC, stating that Microsoft is shifting its focus to Teams as the preferred communication tool.
“We’ve learned a lot from Skype over the years that we’ve put into Teams as we’ve evolved Teams over the last seven to eight years. But we felt like now is the time because we can be simpler for the market, for our customer base, and we can deliver more innovation faster just by being focused on Teams,” Teper explained.
To make the transition seamless, Microsoft is encouraging Skype users to migrate to its free Teams app. As part of the process:
- Skype subscriptions will be discontinued, but users with Skype credits will be able to use them within Teams.
- Over the next few days, users will be able to sign into Teams using their Skype credentials, with their contacts and chats automatically transferred.
- Skype users will also have the option to export their data before the shutdown.
Despite the decision to retire Skype, Microsoft acknowledges the significant impact the platform has had over the years. “This is obviously a big, big moment for us, and we’re certainly very grateful in many ways. Skype pioneered audio and video calling on the web for many, many people,” Teper said.
With Skype’s departure, Microsoft is making it clear that Teams is its primary focus moving forward. By consolidating its communication services, the company hopes to deliver innovation faster and create a more streamlined experience for users.