The reset comes just after Ford and his Progressive Conservatives marked the one-year anniversary of winning a majority government. The announcement also contained the addition of one new ministry as well as five new associate ministers.
Fedeli will now take on the role of Minster of Economic Development, Job Creation and Trade as Rod Phillips moves into the role of finance minister.
Phillips, who was serving as Environment Minister prior to Thursday, is the MPP representing Ajax.
Caroline Mulroney was removed as Attorney General and will now be Minister of Transportation, as well as Francophone Affairs. MPP Doug Downey becomes the new Attorney General.
WATCH: Autism program advocates look for ‘fresh start’ after cabinet shuffle
Lisa MacLeod has been moved from Minister of Children, Community and Social Services to Minister of Tourism, Culture and Sport.
MacLeod faced extreme criticism after the announcement of a new autism program in February.
Another minister being demoted in the shuffle is Education Minister Lisa Thompson who will be responsible for government and consumer services. MPP Stephen Lecce will be her replacement.
It was speculated Fedeli would be potentially moved to a new, large ministry dedicated to northern Ontario.
WATCH: Ford comments on former Ontario Finance Minister Victor Fedeli’s cabinet move
Fedeli, who served as interim leader of the Ontario PCs after former leader Patrick Brown was ousted amid a sexual misconduct scandal, is the MPP representing Nipissing.
The minister has faced harsh criticism after tabling the party’s first budget, which included several municipal cuts, in April.
The move also comes as Ford falls in the polls, with some even suggesting his unpopularity is hurting federal Conservative Leader Andrew Scheer’s chances in the province ahead of October’s election.
Ford’s last shuffle was in November, when about half a dozen ministers were reassigned following the resignation of Jim Wilson to seek treatment for addiction issues.
WATCH: Premier Ford shuffles his cabinet
—With files from the Canadian Press