Microsoft has announced that it will retire Skype in May 2025 as the company is encouraging users to transition to Microsoft Teams, which will now serve as its primary communication and collaboration tool.

According to a recent blog by Microsoft, existing Skype users will be able to log into Microsoft Teams using their Skype credentials, with their chat history, contacts, and group conversations automatically available.

"In the past two years, the number of minutes spent in meetings by consumer users of Teams has grown 4X, reflecting the value Teams brings to everyday communication and collaboration," Microsoft stated in the blog.

Microsoft has assured an easy transition, allowing interoperability between Skype and Teams during a 60-day period. Users who prefer not to migrate will have the option to export their Skype data, including messages and photos.

Microsoft is also discontinuing Skype's paid calling features, preventing new customers from purchasing Skype Credits or subscriptions for international and domestic calls. Existing subscribers will be able to use their credits until the end of their current billing cycle, but the company is advising users who rely on Skype Numbers to switch to another provider.

Skype will remain operational until 5 May 2025, after which Microsoft will fully shift its focus to Teams as its flagship communication service.

End of an era

Skype, the iconic video calling platform, was launched back in 2003. The decision to retire Skype comes nearly 14 years after Microsoft acquired the service in 2011 for nearly $8.5 billion. 

Once a leader in online communication, Skype struggled to compete with newer services such as Zoom, WhatsApp, and Messenger, particularly during the COVID-19 pandemic. Despite Microsoft's past assurances of its commitment to Skype, the shift towards Teams has been evident in recent years, with features increasingly being integrated into the newer platform.

During a recent interview with The Verge, Jeff Teper, president of Microsoft 365 collaborative apps and platforms mentioned the transition will not result in immediate job cuts, as the existing team will continue to focus on improving Teams with new features and AI-driven innovations.