Microsoft has announced the retirement of Skype, its two-decade-old internet calling service, with the platform scheduled to shut down on May 5. The company says that this move is designed to streamline its communication offerings and focus on its more modern Teams service.
Founded in 2003, Skype revolutionized communication with its audio and video call capabilities, quickly becoming a household name. The platform, at its peak, boasted hundreds of millions of users. However, in recent years, Skype faced increased competition from platforms like Zoom, WhatsApp, and Slack.
Microsoft stated that its decision to retire Skype aligns with its strategy to concentrate on its homegrown Teams service. Users are able to seamlessly transition, with existing Skype credentials granting free access to Teams across supported devices, and all chats and contacts migrating automatically.
In 2011, Microsoft acquired Skype for $8.5 billion, outbidding Google and Facebook. At the time of the acquisition, Skype had around 150 million monthly users. While the platform saw a brief resurgence during the pandemic, the number of users dropped to approximately the 23 million mark by 2020.
Microsoft emphasized that Skype ‘has been an integral part of shaping modern communications.’ They also stated that there would be no job cuts due to the shutdown and that Teams currently has around 320 million monthly active users.
