President-elect Donald Trump appointed a controversial media figure to a key job as he began to shape his White House team.
Breitbart news executive Steve Bannon will be chief strategist and senior counsellor, the real estate tycoon announced.
He picked a more establishment figure, Republican Party chief Reince Priebus, as his White House chief of staff.
Mr Bannon, who has ties to the alt-right and white nationalist movement, was also on the shortlist for chief of staff, and he is expected to wield significant clout in Mr Trump's administration after getting top billing in the press release announcing the two appointments.
He helped transform the Breitbart news site into the leading mouthpiece of the party's anti-establishment wing, which helped fuel the businessman's political rise.
Mr Priebus is a Republican Party operative with deep expertise of the Washington establishment that Mr Trump has vowed to shake up, and has close links with House Speaker Paul Ryan, a fellow Wisconsinite.
"I am very grateful to the president-elect for this opportunity to serve him and this nation as we work to create an economy that works for everyone, secure our borders, repeal and replace Obamacare and destroy radical Islamic terrorism," Mr Priebus said.
Mr Trump said: "Steve and Reince are highly qualified leaders who worked well together on our campaign and led us to a historic victory.
"Now I will have them both with me in the White House as we work to make America great again."
Neither Mr Priebus nor Mr Bannon bring policy experience to their new White House roles.
Chiefs of staff in particular play a significant role in policy making, serving as a liaison to Cabinet agencies and deciding what information makes it to the president's desk.
Mr Trump's adult children, who serve as influential advisers to the president-elect, are said to have been concerned about having a controversial figure in the chief of staff role and backed Mr Priebus for the job.
He is a traditional choice, one meant as an olive branch to the Republicans who control both houses of Congress as Mr Trump looks to pass his legislative agenda.
The choice of Mr Bannon, however, is anything but safe.
Under his tenure, Brietbart pushed a nationalist agenda and became one of the leading outlets of the so-called alt-right - a movement often associated with white supremacist ideas that oppose multiculturalism and defend "Western values".
John Weaver, a Republican strategist who worked for Ohio Governor John Kasich's presidential campaign, tweeted: "The racist, fascist extreme right is represented footsteps from the Oval Office. Be very vigilant, America."
Mr Trump said he will not take the 400,000 dollar (£317,000) annual salary for the president, taking only one dollar (80p) a year.
Protests against Mr Trump continued in cities across the country, including New York, Los Angeles, San Francisco and Philadelphia.
Marchers in Manhattan carried signs in English and Spanish saying things like "Hate won't make us great," while chanting: "We are here to stay."
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