Why Skype is being shut down and what it means for you

The two-decade-old internet calling service disrupted the landline industry and changed global communication, but in May it will go offline for good.

A spherical black and grey webcam with the Skype logo in the background.

The calling service, owned by Microsoft since 2011, will close in May.

One of the internet's oldest communications apps will be retired on May 5, after its parent company Microsoft announced that Skype would be replaced with a free version of Microsoft Teams.

Skype, which was founded by a group of Nordic entrepreneurs, first launched in 2003. In the more than two decades since it first came online, it has continued to reshape global communications and is widely credited as one of the first internet calling services to disrupt the landline industry.

In a statement, Microsoft — — said it was phasing out the service to streamline its "free consumer communications offerings" and better adapt to the needs of its customers.

When Skype was at its peak around 2016, it boasted approximately 300 million users.

However, in recent years, as rival messaging platforms have grown in popularity, its numbers have waned, with Microsoft reporting that it had just 36 million users as of 2023.

Here's what the closure means for existing Skype customers.

A move to Teams

Teams, which has many of Skype's core features, such as group and one-on-one calls, messaging, and file sharing, will replace Skype in two months.

Skype users will, over the coming days, be able to use their existing credentials to sign into the free version of Teams on any supported device, according to Microsoft.

Skype users will also have their account data — including their existing chats and contacts — automatically transferred onto their new Teams app.

To ensure Microsoft users can "stay connected" during the transition period, Skype users will be able to call and chat with Teams users and vice versa, the company has said.
On 5 May, Skype will go completely dark, but users who have already purchased paid credits for their next renewal cycle will still be able to use them on Teams.

"Skype has been an integral part of shaping modern communications and supporting countless meaningful moments, and we are honoured to have been part of the journey," Microsoft said when announcing the decision.

Since its internet debut in 2016, Teams has become one of the most popular workplace platforms, with over 320 million users worldwide.

Microsoft confirmed in a statement that no employees working on Skype will be fired as part of the transition.

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3 min read
Published 1 March 2025 2:56pm
By Hannah Ritchie
Presented by Hannah Ritchie
Source: SBS News

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