In this paper, we examine domestic business restructuring by Japanese multinational enterprises by using establishment‐level panel data for the years 2001, 2006, 2009, and 2012. Focusing on the routine‐task intensity of establishments, we examine the impact of restructuring in terms of: (1) what type of establishments are closed or newly established; and (2) what type of establishments increase or reduce their employment when a firm becomes multinational. We measure the skill level of each establishment using occupation‐level routine‐task intensity and occupation composition for each industry. We find that more routine‐task intensive establishments have a greater likelihood of exiting the domestic market when the firm becomes multinational. In the case of continuing establishments, less routine‐task intensive establishments tend to have a higher employment growth rate when a firm becomes multinational. Our results imply that overseas expansion accelerates domestic business restructuring within multinational enterprises and shifts domestic activities toward less routine‐task intensive ones.