Skype to shut down after 20 years as Microsoft shifts focus to Teams

Launched in 2003, Skype struggled to compete with newer platforms, with its user base dropping to 23 million by 2020.

Skype, the pioneering internet calling service, will ring its last call on May 5 as Microsoft retires the two-decade-old platform. The shutdown is part of Microsoft's strategy to streamline its communication services and focus on its own Teams platform.

Launched in 2003, Skype revolutionized communication by enabling free audio and video calls across borders, challenging the landline industry. At its peak, it boasted hundreds of millions of users.

However, Skype struggled to keep up with newer, more user-friendly platforms like Zoom and Slack, particularly as mobile technology advanced. The shift was further driven by Microsoft's pivot toward Teams, which it aggressively integrated with other Office apps to target corporate users.

To help users transition, Microsoft is offering free access to Teams with automatic migration of contacts and chats. While Skype’s user base has significantly dwindled, down to about 23 million users by 2020, Teams now boasts approximately 320 million active users monthly.

Microsoft, which acquired Skype for $8.5 billion in 2011, stated that Skype has played a key role in shaping modern communication and expressed gratitude for its impact. The company also confirmed that there would be no job cuts due to the shutdown of Skype.

Skype joins the list of Microsoft's tech ventures that did not live up to expectations, like Internet Explorer and Windows Phone.