Microsoft to Retire Skype on May 5; Teams is the New Skype

After over two decades of redefining digital communication, Skype is officially signing off. Microsoft recently confirmed that Skype will be discontinued on May 5, 2025, as the company pivots toward Microsoft Teams as its unified communication platform. Once the face of online video calls, Skype revolutionised the way we connected with friends, family, and colleagues across the globe. Launched in 2003, it quickly became a household name, especially during the early 2010s. But over the years, Skype struggled to keep up with rapid innovation and a growing number of competitors.

Now, Microsoft is officially closing the chapter on Skype and shifting its focus entirely to Microsoft Teams, which has steadily gained popularity among both individual users and enterprises. Here’s a look at why Skype is being shut down and what existing users need to know, broken down into five key points.

1. Why is Microsoft shutting down Skype

Microsoft's decision to retire Skype is part of a larger strategy to streamline its communication services. The focus is now on Microsoft Teams — a more modern, feature-rich platform designed for both individual and group communication, collaboration, and productivity. In an official blog post, Microsoft said, “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.” Since the launch of Teams, Microsoft has gradually encouraged users to shift over, and this move marks the final push to consolidate its services.

2. Microsoft plans to transfer Skype users to Teams

The transition isn’t happening overnight. By announcing the retirement months in advance, Microsoft aims to give Skype users ample time to prepare for the change. Skype will remain available until May 5, 2025, and during this window, Microsoft is encouraging users to switch to Teams. The company has pledged to assist in every step of the process and ensure users experience a smooth migration. “All the resources and support to help users migrate smoothly” will be provided, according to Microsoft.

3. What happens to paid Skype services?

If you're a paid Skype user, you might be wondering what happens to your subscriptions. Microsoft has stopped accepting new paid users for Skype Credit and calling plans. However, existing users will not be left in the lurch. Current subscribers can continue using their Skype Credit and active plans until their next renewal date. The company has assured that even after Skype is officially discontinued, any remaining credit will still be accessible. Additionally, paid users will have the option to use the Skype Dial Pad via the Skype web portal or within Microsoft Teams — at least for a limited time.

4. Teams is the new Skype

Skype has served millions for more than 20 years and will always be remembered as a pioneer in digital communication. However, in today’s fast-evolving tech landscape, platforms must innovate quickly to remain relevant. Microsoft is now placing its bets on Teams, a more comprehensive solution that blends communication with productivity. As the company encourages all Skype users to migrate, the message is clear: Microsoft Teams is now the new Skype.

5. How to move to Teams

Transitioning to Microsoft Teams is designed to be a straightforward experience. Users can sign into Teams using their existing Skype credentials, which will allow for automatic transfer of all contacts, conversations, and messages. This ensures that users can continue their communication without starting from scratch. As Microsoft explains, both platforms share many core features, like one-on-one and group calls, instant messaging, and file sharing. But Teams also includes enhanced tools such as calendar integration, team collaboration channels, and community-building features.

While it’s certainly bittersweet to say goodbye, this transition also signals the beginning of a more integrated, future-ready communication platform.