Microsoft announced on Friday it will shutter the once-popular video calling service Skype in May and encouraged users to adopt a free version of its Teams service.
The service will shut down roughly 14 years after Microsoft purchased it for $8.5 billion, after calling Skype “the leading Internet communications company” at the time of the acquisition. Microsoft said the move to retire Skype is being made to “streamline” its consumer offerings by focusing on Teams.
“In order to streamline our free consumer communications offerings so we can more easily adapt to customer needs, we will be retiring Skype in May 2025 to focus on Microsoft Teams (free), our modern communications and collaboration hub,” the company said on Friday.
“With Teams, users have access to many of the same core features they use in Skype, such as one-on-one calls and group calls, messaging, and file sharing. Additionally, Teams offers enhanced features like hosting meetings, managing calendars, and building and joining communities for free,” the statement continued.
Skype users will be able to use the service until May 5. Microsoft says it will offer current Skype users a free transition to Teams to continue their communications and the ability to export their data from the soon-to-be-defunct messaging service.
The company heralded Skype as “integral” to the growth of its communications products but also said it is “excited” about the future of Teams, the service that will effectively replace Skype.
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“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,” Microsoft said. “We also understand that change can be challenging and want you to know that we’re here to support you every step of the way. We’re excited about the new opportunities that Teams brings and are committed to helping you stay connected in new and meaningful ways.”
Skype was launched in 2003 and saw a boom in usage from the mid-2000s through the early 2010s, but it slowly began to lose market share to Zoom and Teams in recent years.