Liberal Democrat peer Baroness Kramer has been appointed transport minister.
She lost her Richmond Park seat to Zac Goldsmith in 2010.
Conservative MP Helen Grant has been moved sideways from the Ministry of Justice.
Conservative MP Matt Hancock has been appointed skills and enterprise minister.
Conservative MP Andrew Robathan replaces Mike Penning as Northern Ireland minister.
BBC political correspondent Chris Mason said Mark Hoban won't miss "whispered conversations in corridors" after being sacked as employment minister.
The Employment Minister Mark Hoban says his sacking after 12 years on the front benches makes it "not his finest day."
Mr Hoban says he is is looking forward to the freedom to express himself in speeches "rather than whispered conversations in corridors"
Assistant whip Nicky Morgan, Conservative MP for Loughborough, has been appointed economic secretary to the treasury, replacing Sajid Javid.
Sports minister Hugh Robertson says he "doesn't know" if he's in for a new job as he enters Downing Street.
Conservative Treasury minister Sajid Javid has just entered Downing Street.
Northern Ireland minister Mike Penning has been moved to the Department of Work and Pensions.