The office of President Emmanuel Macron announced that French Prime Minister Borne has resigned. Macron thanked Borne for his service.
The change of prime minister comes after a year of political crises triggered by controversial reforms to the pension system and immigration laws.
Borne's resignation comes five months before European Parliament elections, which are expected to have dramatic consequences at a time of widespread public discontent in Europe over the rising cost of living and the failure of European governments to stem the flow of migration.
Opinion polls in France show Macron's party trailing far-right leader Marine Le Pen's party by eight to ten points ahead of the June election.
Speculation of a change of government has increased since the narrow passage of toughened immigration rules in parliament exposed deep cracks in Macron's centrist majority. Macron himself has promised a new political initiative.
Potential candidates to replace Borne include 34-year-old Education Minister Gabriel Attal and 37-year-old Defense Minister Sebastien Lecornu, who would be France's youngest-ever prime minister.
Borne will remain in office until a new prime minister is appointed.
