Bruno Retailleau, group leader of the right-wing party The Republicans in the senate, takes over the Ministry of the Interior.
Jean-Noël Barrot, in alliance with Macron's center coalition, who previously was Minister for European Affairs, switches portfolios and becomes Foreign Minister.
Sébastien Lecornu, also a centrist, remains in his position as Defense Minister.
The first challenge is expected to fall on the new Finance Minister Antoine Armand, from Macron's camp, who will present a budget to the fragmented parliament next month.
In the parliamentary election at the beginning of July, both the united left and the far-right made significant gains, but without achieving a sufficient majority. Instead, Macron's movement was forced to seek out the traditional right to try to form a new government.
Opposition politicians from the left have already announced plans for a vote of no confidence.
On the streets of Paris, demonstrators had gathered in protest against the government even before the official announcement.
I'm here because this outcome doesn't correspond to how people voted, says 21-year-old Violette Bourguignon to AFP.
I'm worried and angry. What's the point of even having an election? she continues.
