Microsoft is set to retire Skype on May 5, 2025, signaling the end of the platform that once dominated the video-calling landscape. News of the shutdown was officially announced by the company, which is recommending that users switch to Microsoft Teams Free as their primary communication tool.
Why is Skype Shutting Down?
Microsoft acquired Skype for a substantial $8.5 billion back in 2011. Despite this investment, the platform has struggled to maintain relevance in the face of competition from apps like Zoom, WhatsApp, and FaceTime. Microsoft launched plans in 2017 to retire Skype for Business and replace it with Teams. The corporation then launched a personal version of Teams in 2020.

A Skype webpage on a computer display showing the app will be shutting down later this year. Natalia Seliverstova/Sputnik via AP
Is Microsoft Teams Taking Over Skype?
Starting in March 2025, Skype users will be able to access Microsoft Teams Free with their existing Skype credentials. Microsoft has assured users that their contacts and message history will be automatically migrated. Users will also have the option to export their conversation history.
Amit Fulay, Microsoft’s vice president of product, told The Verge that users will experience a relatively seamless transition when they switch to Teams. “We’ve already done the work on the back end to restore their contacts, message history, and call logs,” Fulay said.
While Microsoft Teams Free will have core Skype features such as messaging and video calls, the company will discontinue Skype’s paid calling services. Users with Skype Credits or subscriptions will be able to use them in Microsoft Teams until the end of their next renewal period. However, the option to call traditional phone numbers will no longer be available to new customers, per Skype’s website.
App Alternatives for Skype and Teams
Users unwilling to switch to Microsoft Teams have several options. Some of these include:
- Zoom—A popular video conferencing tool, particularly for business and professional meetings.
- WhatsApp—Offers free voice and video calls with end-to-end encryption.
- Google Meet—A strong alternative with seamless integration with Gmail and Google Calendar.
- Discord—Popular among gaming communities but also useful for general group calls and chats.
- Signal—A privacy-focused messaging app with encrypted video calling.
Microsoft’s decision to retire Skype did not surprise some in the tech industry. Skype saw early success, with approximately 50 million registered users in 2005, according to Britannica. The number increased to over 600 million within five years. However, the app struggled to innovate and keep pace with the evolving communication landscape. Microsoft is betting on Teams Free as the future of consumer and business communication.
To safeguard their data, Microsoft recommends that users export their Skype contacts and chat history before May 2025.