Minister Manual Valls, dropping ministers who rebelled against cuts.
The first government of Valls, who was appointed less than five months
ago, fell on Monday after a row with Economy Minister Arnaud
Montebourg.
Montebourg resigned along with two other ministers from the left.
He will be replaced by Emmanuel Macron while for the first time a
woman will be put in charge of education.
Najat Vallaud-Belkacem was minister for women's rights in the last
cabinet and will replace Benoit Hamon who also lost his job. Fleur
Pellerin has been made minister for culture, replacing Aurelie
Filippetti who is also out of the government.
Key ministers in the previous cabinet like Foreign Minister Laurent
Fabius, Defence Minister Jean-Yves Le Drian and Finance Minister
Michel Sapin retain their posts.
President Hollande said earlier that the new cabinet should "cohere to
the directions of the prime minister", who is on the party's right
wing.
Montebourg quit after publicly urging the government to end austerity
policies and focus on growth.
France is struggling with high unemployment and low growth and
Hollande's popularity is the lowest for a president in more than 50
years.
Valls was appointed prime minister on March 31 to revive the fortunes
of the ruling party after it took a hammering at local elections.
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