On Sunday, he announced the dismissal of Field Marshal Hussein Tantawi, who was the head of the army and the country's defense minister.
Abdul-Fatah al-Sessi will be replacing Tantawi in both of those posts.
It is yet unclear if there will be a replacement for Tantawi as head of the Supreme Council of the Armed Forces, which had been ruling the country since President Honsi Mubarak was knocked from power in February of 2011.
Morsi was voted into power on June 30, 2012 but has still had to struggle with the military over some political powers.
Tantawi and the army's chief of staff Sami Anan, who is also being forced to retire, will both become presidential advisers.
Various other military leaders were removed from their posts, as well, and given other posts that allow them some influence, but nowhere near as much.
President Morsi also took the time to appoint Mahmoud Mekki, a senior judge who had been outspoken against Mubarak, as vice president.
Various amendments that were placed by the military council, which limited presidential authority and power, were also struck down by Morsi.
The military has yet to respond, but the appointments of ousted leaders to other positions at least suggests that they had foreknowledge and agreed to some degree.
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