In the introduction of the next generation of Skype, we made some big changes to how you show and manage your presence (i.e. visual online status) to others. You responded loud and clear – you were not happy with the changes we made. We’ve been reviewing your feedback and have some updates coming today to the Insider builds. We’re committed to providing you with an amazing experience and appreciate the time you’ve taken to share your thoughts. Let us know if we’ve addressed your concerns related to presence with these changes by completing the survey here.

You asked, we delivered

  • Let me change my status. You can now set your presence from your avatar.
  • I want to be invisible. Added more presence options.
  • Show me my status. You can now always see the status you are showing others.
  • I cannot see who is online, make the green dot bigger! Made the presence indicators on your contacts larger.

These changes are available for Skype version for iOS, Android, Linux, Mac, and Windows Desktop. Coming to the UWP app soon.

Thanks for all you do!

Source: Skype Preview Presence changes based on your feedback - Microsoft Community