Home News End of an Era: Microsoft to Shut Down Skype in May and Replace It With Free Version of Microsoft Teams

End of an Era: Microsoft to Shut Down Skype in May and Replace It With Free Version of Microsoft Teams

by Chloe Mar 27,2025

Microsoft has officially announced its decision to discontinue Skype in May, opting to transition users to a complimentary version of Microsoft Teams. This move comes amidst a landscape dominated by communication giants like WhatsApp, Zoom, FaceTime, and Messenger, which have largely overtaken the VoIP market that Skype once pioneered.

According to reports from The Verge, existing Skype users will seamlessly transition to Microsoft Teams without needing to create new accounts. Their message history, contacts, and other content will be readily available within the Teams app. However, Microsoft plans to phase out the support for making domestic or international calls, a feature that was once central to Skype's appeal.

For those not interested in switching to Teams, Microsoft offers a tool to export Skype data, including photos and conversation history, ensuring users can preserve their digital memories. With the shutdown date set for May 5, users have a 60-day window to make their decision. Microsoft will continue to honor existing Skype credits but will cease offering new paid features that allow for making or receiving calls to cellphones.

The most significant loss with Skype's shutdown is the ability to make direct calls to cellphones. Amit Fulay, Microsoft's vice president of product, explained to The Verge that while this functionality was crucial during Skype's peak, it has become less relevant. "Part of the reason is we look at the usage and the trends, and this functionality was great at the time when voice over IP (VoIP) wasn’t available and mobile data plans were very expensive," Fulay stated. "If we look at the future, that’s not a thing we want to be in."

Microsoft acquired Skype for $8.5 billion in 2011, emphasizing its commitment to real-time video and voice communications and tapping into Skype's then-160 million active users for new market opportunities. Skype once integrated deeply with Windows devices and was even highlighted as a feature for Xbox consoles. However, Microsoft acknowledges that Skype's user base has stagnated in recent years, prompting a shift in focus towards Microsoft Teams for consumer use.