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 Madison Mar 31,2025

Microsoft has officially announced the closure of Skype in May, opting to replace it with a free version of Microsoft Teams. This decision comes as communication platforms like WhatsApp, Zoom, FaceTime, and Messenger continue to lead the VoIP market, overshadowing traditional cellphone calls that Skype once facilitated.

According to The Verge, existing Skype users will seamlessly transition to Microsoft Teams, retaining access to their message history and contacts without needing to set up a new account. However, Microsoft plans to discontinue support for both domestic and international calls through Skype.

For those not wishing to switch to Teams, Microsoft offers a tool to export Skype data, including photos and conversation history. Users have until May 5 to make their decision, as Skype will go offline on that date. Microsoft will continue to honor existing Skype credits, but new customers will no longer have access to paid Skype features for making or receiving international and domestic calls.

The key feature being lost with Skype's shutdown is the ability to make calls to cellphones. Microsoft's vice president of product, Amit Fulay, explained to The Verge that while telephony was a valuable feature during Skype's peak, its relevance has diminished. "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 aiming to tap into Skype's 160 million active users. Initially, Skype became integral to Windows devices and was even promoted as a feature for Xbox consoles. However, Microsoft acknowledges that Skype's user base has stagnated in recent years, shifting their focus towards Microsoft Teams for consumer use.