The End of an Era: Skype to Be Discontinued in May

Abdullah Mustapha

February 28, 2025

Skype is shutting down in May. The latest version of the app includes a message confirming its end. Microsoft, which owns Skype, has decided to discontinue the service after more than 20 years.

For years, Skype was a top choice for video and audio calls. Microsoft bought it in 2011 for $8.5 billion, expecting it to be a key tool for communication. However, competition grew with the rise of WhatsApp, Zoom, and Google Meet. Microsoft also introduced Teams, which became its preferred communication platform.

Why Is Skype Shutting Down?

Skype’s decline has been gradual. Despite updates, its popularity dropped as users switched to easier and more feature-rich alternatives. Microsoft Teams, launched in 2017, played a major role in this shift. Originally designed for businesses, Teams quickly attracted individual users. Its success overshadowed Skype, which struggled to keep up.

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The final nail in Skype’s coffin was a message found by XDA Developers in its latest update. It states: “Starting in May, Skype will no longer be available. Continue your calls and discussions on Teams.” This confirms Microsoft’s decision to retire the service.

The Rise of Microsoft Teams

Teams’ popularity exploded during the COVID-19 pandemic. In July 2019, it had 13 million daily users. By November, that number grew to 20 million. In early 2020, as remote work increased, Teams hit 44 million users. By April, it reached 70 million. In 2021, the number soared to 145 million. Between 2022 and 2024, Teams grew from 270 million to 320 million daily active users.

Meanwhile, Skype’s numbers kept falling. In 2022, its revenue dropped below 200 million euros. By 2023, its daily users fell under 36 million. Many preferred other services with better features and usability.

A Costly Mistake for Microsoft

Microsoft’s $8.5 billion investment in Skype did not pay off. Despite its early success, the platform could not compete with newer services. Microsoft tried to keep it relevant, but Skype’s decline was inevitable.

Now, Microsoft is focusing on Teams. Users are encouraged to switch before Skype shuts down for good. While the service will be remembered as a pioneer in online communication, its time has come to an end.

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01net