Microsoft is ending its Skype calling and messaging service, marking the end of an era for the original internet communication platform. The service, which Microsoft acquired 14 years ago, will be phased out on May 5. Its replacement will be a free version of Microsoft Teams.
“Skype has been an integral part of shaping modern communications and supporting countless meaningful moments, and we are honored to have been part of the journey,” said Jeff Teper, Microsoft’s president of collaborative apps and platforms, in a statement.
Microsoft has chosen Teams as its successor for years, offering the same types of video calls and group meetings. As a result of the transition, a spokeswoman confirmed that no employees who worked on Skype will be laid off.
According to a company blog post, users will be able to transfer their old account data to their new Teams account, including old chats and contacts.
Skype was initially launched in 2003 by a group of Nordic entrepreneurs. The online marketplace eBay acquired it two years later for $2.6 billion, before Microsoft purchased it in 2011 for $8.5 billion, at the time Microsoft’s largest acquisition.
Around 2016, Skype had 300 million users at its peak. However, its popularity decreased over the years, surpassed by competing messaging platforms like WhatsApp and professional workplace apps like Slack. By 2023, Skype had only 36 million users.
Microsoft introduced Teams in 2016, and it has since grown to become one of the industry’s most popular workplace platforms, with over 320 million users. The company plans to increase investment in Teams.
Teams became Microsoft’s primary messaging platform almost immediately after its release. In 2017, Microsoft announced it would phase out Skype for Business, which took effect four years later.
The company said that Skype users who paid for credits will have access to them until the next renewal period. Even after the platform is shut down in May, the Skype Dial Pad will remain available to paid users within Teams.
