Microsoft is retiring its Skype internet calling service on May 5, after two decades of connecting people across the globe, the company announced. Skype users will have their chats and contacts migrated to Microsoft Teams.
A 3D printed Skype logo is placed in front of a keyboard in this illustration. (Dado Ruvic/Reuters)
This move is intended to allow Microsoft to focus on its Teams service and create a more streamlined offering. Launched in 2003, Skype quickly became a household name. The platform’s audio and video capabilities disrupted the landline industry, amassing a large user base of hundreds of millions at one point.
However, competition from other tech companies proved challenging. The company had struggled to adapt, particularly as competitors such as Zoom, WhatsApp (Meta), Slack (Salesforce), and WeChat (Tencent) gained market share. The platform’s legacy technology was not optimized for the smartphone era.
Microsoft has emphasized the importance of Teams, especially as the pandemic and work-from-home trends increased the demand for online business calls. To encourage a smooth transition, Skype users can log in to Teams on any supported device, free of charge, using their existing credentials. Their chats and contacts will then be automatically migrated. Other tech companies such as Google have had similar challenges with communication tools, as exemplified by its Hangouts and Duo apps.
Microsoft declined to provide the most recent user figures for Skype and said the move would not lead to any job cuts at the company. The software giant did note that Teams currently has about 320 million monthly active users.
Microsoft acquired Skype in 2011 for $8.5 billion US. At the time of acquisition, Microsoft outbid Google and Facebook, making it their largest deal. At its peak, Skype had approximately 150 million monthly users. However, by 2020, that figure had dropped to around 23 million, despite a brief resurgence during the pandemic.
Microsoft stated that Skype “has been an integral part of shaping modern communications.” Skype was founded by Niklas Zennstrom and Janus Friis, who previously created Kazaa.
