Microsoft has confirmed that Skype, the pioneering internet calling and messaging service, will be shut down on May 5, 2025, marking the end of its 22-year run. Launched in 2003, Skype revolutionized online communication by offering free voice and video calls at a time when international calls were costly. After Microsoft acquired it for $8.5 billion in 2011—its largest acquisition at the time—Skype peaked with over 300 million monthly users.
However, its relevance has waned in recent years, with its user base shrinking to around 36 million daily active users by 2023, overshadowed by competitors like Zoom, WhatsApp, and Microsoft’s own Teams, which now boasts 320 million monthly users.
The decision to retire Skype comes as Microsoft shifts its focus to Microsoft Teams, designating the free consumer version as Skype’s successor. Starting immediately, Skype users can log into Teams with their existing credentials, with chats, contacts, and message history migrating automatically.
For those opting out, an export tool is available to download their data, though options for using it elsewhere are limited. Microsoft will retain user data until the end of 2025, after which it will be deleted if no action is taken. The transition period runs until May 5, giving users roughly two months from now to adapt.
A key change is the discontinuation of Skype’s telephony features, such as calling landlines or mobile numbers, which Microsoft deems less relevant in today’s mobile-centric, data-rich environment. Existing Skype credits and subscriptions remain usable until the shutdown, with a web-based dial pad and Teams integration available post-May for lingering credits.
The move reflects Microsoft’s strategy to consolidate its communication platforms, building on Teams’ growth since its 2016 debut and the earlier retirement of Skype for Business in 2021. While Skype’s shutdown ends an era, it underscores a shift toward integrated, modern tools better suited to current user needs.