The end of an era: Microsoft to retire Skype on May 5, 2025
- Marijan Hassan - Tech Journalist
- Mar 7
- 2 min read
Microsoft has announced it will retire Skype on May 5th, 2025 as the company shifts its focus entirely to Microsoft Teams. The platform, which once boasted 300 million users at its peak, was a trailblazer in internet telephony. It allowed users to make voice and video calls over the internet long before smartphones became ubiquitous.
However, the emergence of rivals like WhatsApp, Zoom, and Microsoft’s own Teams gradually eroded Skype’s user base. According to Microsoft’s last report in early 2023, the platform had 36 million daily users.
Why now?
When Microsoft acquired Skype for $8.5 billion in 2011, it had 124 million active monthly users. By 2013, that number had peaked at 300 million, but growth stagnated in the following years. The COVID-19 pandemic saw a brief resurgence, with Skype usage spiking to 40 million daily users in March 2020, but it ultimately couldn’t keep up with competitors.
Consequently, Microsoft has said it wants to focus on one communication tool and Teams is the obvious choice.
“We know this is a big deal for our Skype users, and we’re very grateful for their support of Skype and all the learnings that have factored into Teams over the last seven years,” said Jeff Teper, president of Microsoft 365 collaborative apps and platforms.
“At this point, putting all our focus behind Teams will let us give a simpler message and drive faster innovation,” he added.
What’s next for Skype users?
Between now and May 5, users will have two primary options:
Migrate to Microsoft Teams: Skype users can transition seamlessly to Teams, where all their contacts and chat history will be preserved.
Export Data: Users who wish to retain their Skype chat history without moving to Teams can use Skype’s built-in export tool.
For those who relied on Skype’s phone-call functionality, Microsoft has already begun phasing out Skype phone numbers and credit top-ups. After April 3, subscription renewals for Skype-to-phone calling will cease. However, users with remaining Skype credit will still be able to make calls through a Skype Dial Pad available in the Skype web portal and within Teams.
The future of Teams
Microsoft sees Teams as the future of communication and collaboration, and its investment in the platform is paying off. Over the past two years, consumer calling minutes in Teams have quadrupled. While Microsoft has not disclosed how many of its 320 million Teams users are consumers, the company is confident that Teams is now mature enough to absorb Skype’s remaining user base.
“We’ve thought about [shutting down Skype] for a while, but we really felt like the product had to show the end-user adoption with consumers telling us it was ready,” Teper said.
