Mr Luxon has sacked senior minister Chris Bishop as the National party's campaign chair, promoting health minister Simeon Brown into the role.
The Kiwi prime minister made the shift during a ministerial reshuffle which elevated Chris Penk and Penny Simmonds into cabinet for retiring pair Judith Collins and Shane Reti.
Mr Penk takes over Ms Collins' responsibilities for defence and New Zealand's spy agencies, while Ms Simmons gains tertiary education and science.
However, the dynamite political news was shifting Mr Bishop from the crucial campaign post he has held since before the 2023 election, when National took government.
The centre-right party has drifted in the polls since, falling from 38 per cent at the last election, to a poll average of 31 per cent.
Local media reported in November that Mr Bishop initiated conversations with his caucus as to whether there might be an appetite for a leadership change, given Mr Luxon's deep unpopularity.
Mr Bishop denied those reports, telling AAP that journalists were "interviewing their typewriters".Â
On Thursday, Mr Luxon also denied his decision to remove Mr Bishop from the campaign chair post, as well the leader of the house, was politically driven.
"It's acknowledging a very big workload with a massive set of deliverables in the next wee while," he said.
Mr Luxon said the discussion informing Mr Bishop was "really positive" and they agreed he should focus on delivering planning reforms, and his new post of attorney-general.
Mr Bishop was also stripped of his associate sport portfolio.
"I didn't think we needed it," Mr Luxon said.
"Chris Bishop will be able to get cricket tickets. It'll be all right."
Both Mr Bishop a Wellington-based moderate, and Mr Brown, an Auckland-based conservative, are part of Mr Luxon's six-strong kitchen cabinet that makes major strategic decisions.
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