End of an icon: Microsoft to shut down Skype permanently to focus on Teams

End of an icon: Microsoft to shut down Skype permanently to focus on Teams

Microsoft has announced the permanent shutdown of Skype, marking the end of an era for the pioneering app. The company will now focus on Teams, its business-oriented communication platform.

Skype to soon meet its end
Danny D'Cruze
  • Mar 03, 2025,
  • Updated Mar 03, 2025, 5:33 AM IST

After two decades of connecting the world, Skype is signing off for good. Microsoft has announced that the pioneering internet calling service will officially shut down on May 5, 2025, marking the end of an era for the app that once redefined communication.

The decision isn’t entirely surprising—Skype has been on life support for years, struggling to keep pace with slicker, more mobile-friendly competitors like Zoom and Slack. Instead of reviving it, Microsoft is streamlining its communication offerings by focusing entirely on Teams, its business-oriented collaboration platform.

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Back in the early 2000s, Skype was the stuff of tech magic. Launched in 2003, it made free voice and video calls over the internet a reality, disrupting traditional landlines and even reshaping long-distance relationships. By the late 2000s, it was everywhere—families, businesses, even TV interviews relied on Skype to bridge distances.

Microsoft clearly saw the potential and snapped it up in 2011 for $8.5 billion, outbidding both Google and Facebook. But despite its early dominance, Skype failed to evolve with the times. Its technology, built for desktops, wasn’t designed for the smartphone era. By the time Zoom and Slack emerged with smoother, more reliable services, Skype was already fading into the background.

Even the pandemic, which turned video calls into an essential service, wasn’t enough to revive it. Instead of pushing Skype, Microsoft doubled down on Teams, which now boasts around 320 million monthly active users. In contrast, Skype’s user base had shrunk to just 23 million by 2020.

For the remaining Skype loyalists, Microsoft promises a soft landing. Users can log into Teams for free using their Skype credentials, with chats and contacts migrating automatically. There won’t be any job cuts as a result of the shutdown, but Microsoft isn’t sharing just how many people were still using Skype before pulling the plug.

Another Microsoft misfire?

Skype now joins a long list of Microsoft’s big bets that didn’t quite pan out—right alongside Internet Explorer and Windows Phone. While the company acknowledges Skype’s impact on modern communication, it’s clear that the app’s best days are long behind it.

So, if you’ve still got that familiar ringtone stuck in your head, now’s the time to fire up one last call—before Skype says its final goodbye.

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