End of the Line for Skype, Microsoft to Pull the Plug in May

Microsoft has announced that Skype will be officially discontinued on May 5, 2025, marking the end of the once-dominant VoIP and messaging platform.

Users will have the option to migrate their contacts, messages, and call logs to the free version of Microsoft Teams or export their data before the shutdown.

The decision to retire Skype was confirmed by Jeff Teper, president of Microsoft 365 Collaborative Apps & Platforms, in an interview with The Verge. He emphasized that users will have control over their transition, with the ability to either move their conversation history and contacts to Teams or export their data for offline storage. Microsoft has already integrated migration tools into Teams, ensuring a seamless transition without the need for a new account.

Amit Fulay, vice president of product at Microsoft, explained that Skype users will soon see a prompt within the app informing them of the upcoming shutdown. If they choose to switch to Teams, their chats and contacts will automatically appear in the app, allowing them to continue conversations without interruption. To ease the transition, Microsoft will maintain interoperability between Skype and Teams during the 60-day migration period, meaning messages sent from Teams will still reach Skype users.

One significant loss for Skype users is the removal of its telephony features, which allowed calls to domestic and international phone numbers. Microsoft has cited declining usage and the widespread adoption of VoIP and mobile data services as key reasons for this decision. While existing credits and subscriptions will be honored until the end of their next renewal period, users with a Skype Number will need to port it to another provider before the shutdown. Microsoft has no plans to introduce consumer-focused calling plans in Teams, reinforcing its shift away from traditional phone services.

Originally launched in 2003 by a team of Scandinavian and Estonian developers, Skype became a major player in internet-based communication. Microsoft acquired it in 2011 for $8.5 billion, using it to replace Windows Live Messenger. Despite efforts to modernize the platform, Skype struggled to compete with services like WhatsApp, FaceTime, and Zoom, particularly during the COVID-19 pandemic when Zoom saw massive user adoption while Skype stagnated.

The retirement of Skype is part of Microsoft’s broader strategy to consolidate its communication services under the Teams brand. The company introduced the personal version of Teams in 2020 but maintained support for Skype in parallel. However, recent moves—such as ending Skype credits and phone number services—signaled that the platform’s days were numbered.

Microsoft has assured that no layoffs will result from Skype’s shutdown, as its development team has already been integrated with the Teams division. Instead, the focus will be on improving Teams with new features and AI-driven enhancements.

With just over two months remaining before Skype goes offline, users are encouraged to either transition to Teams or export their data. Microsoft has provided a tool to help users access their Skype chat history after export, ensuring they retain their conversations even if they choose not to migrate.