In this paper, we explain how generalized dynamical r-matrices can be obtained by (quasi-)Poisson reduction. New examples of Poisson structures, Poisson Gspaces and Poisson groupoid actions naturally appear in this setting. As an application, we use a generalized dynamical r-matrix, induced by the gauge fixing procedure, to give a new finite dimensional description of the Atiyah-Bott symplectic structure on the moduli space of flat connections on a surface. Using this, we find a Poisson groupoid symmetry of the moduli space.