Microsoft to Retire Skype in May 2025, Transitioning Users to Teams

February 28, 2025 — Microsoft has announced plans to discontinue its Skype service on May 5, 2025, directing users to transition to its Teams platform. This move signifies the end of an era for the pioneering internet communication tool.

Launched in 2003, Skype revolutionized online communication by offering voice and video calls over the internet, significantly impacting traditional telephony. Microsoft acquired Skype in 2011 for $8.5 billion, aiming to integrate its capabilities into the company's ecosystem. However, in recent years, Skype has faced stiff competition from platforms like Zoom and Slack, leading to a decline in its user base. By 2020, monthly active users had decreased to approximately 23 million, a significant drop from 150 million in 2011.

In contrast, Microsoft Teams, introduced in 2017, has seen rapid adoption, especially during the COVID-19 pandemic, due to its seamless integration with other Microsoft Office applications. As of now, Teams boasts around 320 million monthly active users.

Jeff Teper, Microsoft's President overseeing communications and collaboration tools, stated that the decision to retire Skype aligns with the company's strategy to streamline its communication services and focus on platforms that offer integrated experiences. He emphasized that the shift would allow Microsoft to concentrate on enhancing Teams' features for both consumers and businesses.

To facilitate a smooth transition, Microsoft has outlined that existing Skype users will have their accounts, message histories, group chats, and contacts automatically migrated to Teams. During a 60-day interoperability window, users can continue to use Skype while familiarizing themselves with Teams. Additionally, existing Skype credits and subscriptions will be honored until the end of the next renewal period.

This strategic move reflects Microsoft's response to evolving communication trends, where integrated platforms offering a suite of services are favored over standalone applications. The company assures that there will be no immediate job cuts resulting from Skype's discontinuation, as the existing team will continue to work on improving Teams.

As May 5 approaches, Microsoft plans to provide continuous support to users during the transition period, ensuring that the migration to Teams is as seamless as possible.