Microsoft will discontinue Skype in May 2025, encouraging users to transition to Teams, its workplace communication platform.

Skype was acquired for US$8.5 billion in 2011.

Its daily users dropped from 300 million in 2016 to 36 million in 2023 due to competition from apps like Zoom and WhatsApp.

Teams now has 320 million monthly users, reflecting Microsoft’s shift toward enhancing its workplace platform with features like artificial intelligence tools.

The decision to retire Skype aligns with broader industry trends, as companies like Amazon and Google have also phased out underperforming communication tools.

Skype’s decline was due to reliability issues and competition, while Teams’ growth has made it a strong competitor to Slack.

Skype employees will be reassigned within the company, with no layoffs planned.

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