Updates are necessary for all the software and programs but they can be problematic too. Users often deal with the issue of losing their contacts from Skype when it goes through the update. You can try the given methods to recover the contacts without any further trouble.
Method 1: use the Skype directory to add contacts back into the account
Method 2: Restore Skype contacts from the backup
Users need not become annoyed because the contacts get saved in the server itself. They can avail instant Skype customer support if required.