Attorney General Christian Porter will step down from his post while continuing to serve in the Cabinet as the minister for science, industry and technology, Morrison told reporters.
'Every portfolio area is, and should be, relevant to women, ' the former political staffer said.
"I acknowledge that many Australians, especially women, believe that I have not heard them.
She is a woman of great talent, great experience and great practicality", Mr Morrison said.
"I would urge that the path we have to go down is one that we have to go down together", Morrison said last week.
"These changes will shake up what needs to be shaken up", Morrison said.
Senator Reynolds replaces scandal-prone minister Stuart Robert, who will take over the workforce, skills, employment and small business portfolios.
The focus on women was also highlighted by expanding the number of female ministers in Cabinet to five, bringing Melissa Price back into the fold.
Reynolds recently came under fire for calling Brittany Higgins, a former Liberal party staffer who alleges she was raped by a male colleague at Parliament House in 2019, a "lying cow".
Other new roles related to women include women's economic security portfolio to be held by Jane Hume in the outer ministry, while Queensland senator Amanda Stoker will become assistant minister for industrial relations and women.
While promoting several female lawmakers, Morrison also moved two MPs who have been the subject of allegations.
Social Services Minister Anne Ruston will add Minister for Women's Safety to her responsibilities and join a broader leadership group within the Cabinet.
'Previous governments had a minister for women, who was expected to cover all issues that affect women.
Ms Credlin lambasted the comment, saying it 'again exposes the government's real problem'.
On Monday night, Credlin said she took umbrage with the task force, claiming "we don't want to be separate or different".
"I don't know why, but the PM keeps making these fundamental mistakes on women ... quite honestly PM, the sooner you get off this issue and onto the concerns facing ordinary households tonight ... the better for you and the better for our country". Women's safety is everyone's safety, ' she said.
However, Morrison has maintained a comfortable lead over Labor leader Anthony Albanese.
Under the Cabinet reshuffle announced by Morrison, Michaelia Cash will become the new attorney-general and Peter Dutton will take over as defense minister.
"The key question is whether this reshuffle addresses the core grievances that everybody has been hearing from women MPs; the misogyny in Parliament House, the toxic culture, the boys club".
Linda Reynolds has also been demoted from her role as Minister for Defence and will transition into the Minister for Government Services.