Microsoft to Retire Skype on May 5, Paving the Way for Teams
Skype, the once-revolutionary internet calling service will shut down permanently on May 5, as Microsoft shifts its focus to its more integrated Teams platform.
Founded in 2003, Skype disrupted the landline industry and became a household name with hundreds of millions of users at its peak. However, in recent years, it has struggled against easier-to-use and more reliable rivals like Zoom and Slack, particularly due to its outdated technology, which wasn’t well-suited for the smartphone era.
Microsoft acquired Skype for $8.5 billion in 2011, outbidding Google and Facebook. At the time, Skype had around 150 million monthly users, but by 2020, that number had dropped to just 23 million, despite a brief surge in usage during the pandemic.
During the remote work boom, Microsoft aggressively pushed Teams by integrating it with Office apps, shifting its focus away from Skype. As a result, Teams now boasts 320 million monthly active users, while Skype has faded into obscurity.
To ease the transition, Skype users will be able to log into Teams for free using their existing credentials, with their chats and contacts migrating automatically. Microsoft emphasized that no job cuts will result from Skype’s retirement.
With this move, Skype joins Microsoft's list of once-dominant but now-defunct projects, including Internet Explorer and Windows Phone. Other tech giants like Google have also struggled with communication apps, making multiple attempts with Hangouts and Duo.
"Skype has been an integral part of shaping modern communications. We are honored to have been part of the journey," Microsoft said in its announcement.
