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FAME Delivered > Blog > Technology > Microsoft Is Shutting Down Skype in Favor of Teams
TechnologyBusiness

Microsoft Is Shutting Down Skype in Favor of Teams

Staff Editor
Staff Editor Published February 28, 2025
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3 Min Read
Microsoft is shutting down Skype in favor of Teams
Microsoft is shutting down Skype in favor of Teams
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Skype will officially be retired on May 5, 2025, as Microsoft shifts its focus to Teams.

Contents
The End of an EraWhat Happens to Your Skype Data?No More Calling FeaturesWhy Is Microsoft Shutting Down Skype?What’s Next?

The End of an Era

Microsoft has announced that Skype will be shut down on May 5, with users encouraged to migrate to Microsoft Teams (free version). All messages, contacts, and group chats will be automatically available in Teams without the need for a new account. Users can also choose to export their Skype data, including chat history and photos.

“Skype users will be in control, they’ll have the choice,” said Jeff Teper, President of Microsoft 365.

What Happens to Your Skype Data?

Skype users will soon see a prompt to move to Microsoft Teams.
 Image: Microsoft
  • Automatic migration to Teams (chats, contacts, call logs stay intact).
  • Option to export conversation history and photos for those who don’t want to switch.
  • Skype-to-Teams interoperability will be available during the 60-day transition period.

No More Calling Features

One major change is the removal of Skype’s telephony services, meaning users will no longer be able to call domestic or international numbers. Existing Skype credits and subscriptions will be honored until the end of their next renewal period, but new customers will no longer have access to Skype’s paid calling features.

“The world has moved on,” said Microsoft VP Amit Fulay, explaining that cheaper mobile data and VoIP services have made Skype’s calling features less relevant.

Why Is Microsoft Shutting Down Skype?

Since its $8.5 billion acquisition of Skype in 2011, Microsoft has struggled to compete with FaceTime, WhatsApp, Zoom, and Messenger. During the COVID-19 pandemic, Skype failed to gain traction while Zoom surged in popularity.

Microsoft introduced Teams for personal use in 2020 and had continued investing in Skype, but signs of its retirement were already visible, such as phasing out Skype credits in December 2024.

What’s Next?

Microsoft will now focus entirely on Teams, integrating AI innovations and user-friendly features. The transition won’t lead to layoffs, as Skype’s development team has already merged with Teams.

Are you planning to switch to Teams or move on from Skype? Let us know in the comments!

For more updates check out our Instagram handle.

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