Microsoft has officially announced it will discontinue Skype in May, replacing it with a free edition of Microsoft Teams.
This decision arrives as platforms like WhatsApp, Zoom, FaceTime, and Messenger dominate VoIP communications, making traditional phone call services like Skype's increasingly obsolete.
According to The Verge, existing Skype users can seamlessly transition to Microsoft Teams while retaining their message history, contacts, and other data without creating new accounts. However, Microsoft will gradually discontinue domestic and international call support.
Users who prefer not to switch to Teams can export their Skype data—including photos and chat logs—using a dedicated tool Microsoft provides for accessing historical conversations.
The shutdown takes effect on May 5, giving users 60 days to decide. While Microsoft will honor unused Skype credits, it will no longer offer paid calling features for international or domestic calls to new users.
The most significant loss with Skype's retirement is its cellular calling capability. Microsoft told The Verge that while this feature was valuable during Skype's peak, its relevance has diminished.
"Usage trends show this functionality thrived when VoIP was scarce and mobile data costs were prohibitive," explained Amit Fulay, Microsoft's VP of Product. "Moving forward, it no longer aligns with our vision."
Microsoft acquired Skype for $8.5 billion in 2011, aiming to strengthen its real-time communication offerings for Skype's 160+ million active users.
Once integral to Windows devices and even marketed as an Xbox feature, Skype's user growth has stagnated. Microsoft now prioritizes Teams for consumer communications.