Microsoft has officially announced that Skype will be shutting down permanently in May 2025, over two decades after it initially released. It will be replaced by Microsoft Teams.
Microsoft said in their announcement that they're retiring Skype to "streamline our free consumer communications offerings so we can more easily adapt to customer needs."
Microsoft Teams will instead be used for what Skype was being used for. Microsoft called Teams their free modern communications hub, and said that hundreds of millions of users already use Teams.
People who still actively use Skype will be able to use their existing Skype login credentials to login and start using Microsoft Teams. They will also have the option to export all their Skype data if they do not wish to use Teams, which will include things such as your chats & call history. During the transition period between now and May, Skype users will be able to have calls and chats with Teams users, and vise versa.
Starting now, you can't purchase a subscription at Skype or begin using Skype Credit. Existing subscribers or Skype Credit users can continue to use their paid plans until Skype finally shuts down.