Microsoft to shut down Skype by May 2025, shifts focus to teams

Microsoft has announced that it will be discontinuing Skype, the pioneering online voice and video calling service, by May 5, 2025. The company is directing users to transition to its Microsoft Teams platform for continued communication services.

According to a post from Skype Support on X (formerly Twitter), the service will no longer be available after the specified date. Microsoft stated that retiring Skype will help streamline its communication offerings and allow it to focus entirely on enhancing the Teams platform.

A Revolutionary Communication Tool

Skype was founded in 2003 in Estonia by Scandinavian entrepreneurs Niklas Zennström and Janus Friis. It revolutionised internet communication by offering free voice calls between computers and low-cost calls to landlines and mobile phones.

As internet speeds improved, Skype introduced additional features such as video calls, instant messaging, file sharing, and group communication, making it one of the most widely used platforms worldwide.

By 2005, Skype had already amassed 50 million registered users, reflecting its rapid global adoption.

Acquisition and Struggles Against Competition

In 2005, eBay acquired Skype for approximately $2.6 billion, but the expected synergy never materialised. By 2009, eBay sold a majority stake to a group of investors, who later sold it to Microsoft in 2011.

In recent years, however, Skype has struggled to compete with newer rivals such as WhatsApp (owned by Meta), Zoom, and Microsoft’s own Teams—especially with the rise of smartphones and cloud-based communication platforms.

Microsoft’s Vision for the Future

Jeff Teper, President of Microsoft 365 Collaborative Apps and Platforms, stated in an interview with CNBC that Skype played a significant role in shaping communication technologies, but the company now aims to simplify its offerings.

“We have learnt a lot from Skype,” Teper said. “Over the past 7 to 8 years, we have built Teams, and we believe that now is the right time to focus solely on Teams to drive faster innovation and better serve our customers.”

With Skype set to be phased out by May 2025, users are encouraged to switch to Microsoft Teams, which offers an integrated experience with Microsoft 365 and enhanced collaboration tools.

This move marks the end of an era for Skype, once a leader in digital communication, as Microsoft shifts its strategy to meet modern communication demands.