Boris Johnson is appointing his new cabinet team
Sajid Javid resigns and Rishi Sunak is appointed new chancellor
Alok Sharma new business secretary and head of UN climate summit
Esther McVey and Andrea Leadsom both lose their jobs
Northern Ireland Secretary Julian Smith is sacked
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The Guardian's Helen Pidd says the prime minister "is certainly not rewarding talent".
"If you look at what Julian Smith has achieved in Northern Ireland - his reward is to be sacked.
"Loyalty appears to be valued above everything."
Image source, PA MediaWhile you are sensibly following all the breaking news from the reshuffle on this live page - not everyone is able to get onto the BBC News website.
One such unlucky soul is the Leader of the Commons, Jacob Rees-Mogg, who only discovered the resignation of the chancellor when he was at the dispatch box.
During business questions, Labour's Jeff Smith asked him: "Can we have a statement on the surprising news that the Chancellor of the Exchequer has been sacked?"
A surprised Mr Rees-Mogg was forced to reply: "The honourable gentleman is ahead of me on the news cycle."
We hope Mr Rees-Mogg will download the BBC app to keep up-to-date.
It wasn't long ago that Sajid Javid was the boss and Rishi Sunak his junior.
The former chancellor tweeted a picture of the pair back in December when they were heading out to the cinema.
It seems he taught his young Jedi well...
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Another minister who may be breathing a sigh of relief today is Robert Buckland.
No 10 confirms he will remain as the justice secretary - a job he was appointed to when Boris Johnson took over Downing Street in July last year.
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Sun journalist Tom Newton Dunn says: "It has only been six months since Boris Johnson appointed Sajid Javid as chancellor.
"But even in that six months the relationship has changed.
"Some of Mr Javid's advisers felt there was a little too much respect going on and that Mr Javid was behaving like the PM's little brother.
"That changed as the days went on.
"And Downing Street clearly decided it wanted to be in total control."
Image source, Getty ImagesAlok Sharma is the next announcement, taking on the role of business secretary.
He replaces his predecessor Andrea Leadsom, who was sacked this morning as part of the PM's reshuffle.
He will also be the minister in charge of the COP26 climate change conference in Glasgow later this year.
Mr Sharma's promotion leaves his job as international development secretary open.
Image source, UK ParliamentNow it is time for the Liberal Democrats to voice their opinions on the surprise announcements from No 10.
The party's acting leader, Sir Ed Davey, says the reshuffle is "in tatters" with the government having lost its chancellor just a month before the Budget is due.
And, like Labour's front bench, Sir Ed links the drama to the PM's chief adviser.
"Like every crisis at No 10, you can see Dominic Cummings lurking in the background," he says.
"This is the Conservatives' own un-elected bureaucrat, unaccountable to the public attempting to control every part of government."
Sir Ed says his party will "continue oppose this woeful Tory government and offer real solutions to the deep challenges and injustices our country faces”.
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Conservative MP Ben Bradley says Rishi Sunak has been a key part of the Treasury team and will do a good job in his new role.
"Good for Sajid," says Labour's Bell Ribeiro-Addy.
"Every minister knows you are only good as your team," she says, adding: "Being willing to get rid of them would have shown absolutely no loyalty."
Image source, ReutersShadow chancellor John McDonnell with his former opposite number Sajid Javid
Labour's John McDonnell is not missing the opportunity to have his say about the drama unfolding in Downing Street.
The shadow chancellor releases a statement saying it "must be a historical record with the government in crisis after just over two months in power".
He claims that the PM's chief adviser, Dominic Cummings, has "clearly won the battle to take absolute control of the Treasury".
And his says the appointment of Rishi Sunak as Chancellor was the equivalent of Mr Cummings "installing his stooge" in No 11.
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BBC political editor Laura Kuenssberg says: "The relationship between these two next door neighbours in Downing Street is vital in any government.
"The relationship between the two men as individuals has been OK but there have been clashes between their wider teams.
"This is a massive elevation for Rishi Sunak - a year ago he was one of the most junior ministers in the communities department.
"A step up to chancellor this quickly is a huge ask.
"He has not been tested in any significant way but had been seen as someone who was a reliable performer during the election campaign."
BBC Politics Live
BBC2's lunchtime political programme
Sun journalist Tom Newton Dunn says: "No PM carries out a reshuffle and expects their chancellor to resign half way through it.
"This is a calamity.
"The city doesn't like losing chancellors - it unnerves everybody."
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Deputy political editor of The Times Steven Swinford says: "The issue is one of control - Downing Street wants more control over the Treasury."
"There were warning signs last week when Sajid Javid made clear his support for HS2 before the decision had been made public," he says.
"There were also clashes during the election campaign when he insisted on very tight fiscal rules which meant the Tories would have to balance the books.
"That was objected to by Dominic Cummings."
Amidst all the noise over the role of chancellor, just a quick mention for Priti Patel, who is remaining as home secretary in the reshuffle.
Image source, AFP/Getty ImagesRishi Sunak is the MP for Richmond in Yorkshire, having taken the seat in 2015.
He has held the post of chief secretary to the Treasury since Boris Johnson came into office in July 2019.
Before that he was the parliamentary under-secretary for housing, communities and local government.
Mr Sunak campaigned for leave during the referendum campaign. However, he also voted for Theresa May's deal three times, unlike some of his fellow Brexiteers.
He was an early supporter of Mr Johnson in his leadership campaign and made a number of appearances to give his backing.
Before coming into politics, Mr Sunak worked in business and finance.
Shadow chancellor tweets...
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SNP Westminster leader tweets...
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Vicki Young
Chief Political Correspondent
For weeks there have been lots of rumours and speculation about a falling out between the prime minister's chief advisor Dominic Cummings and Sajid Javid (along with his staff).
It was clear Mr Cummings wanted to make changes to Whitehall, but although some of those changes were said to have gone away, he still wanted to make sure that No 10 was in control of what was going on at the Treasury.
And he didn't feel that was happening.
What seems to have happened today is Sajid Javid went in, all smiles, and with no one predicting he wasn't going to come out as Chancellor.
But that didn't happen.
We are hearing the now-former chancellor was asked to change the way his office worked, including getting rid of some of his own advisors, but he seems to have refused and instead left his position.
When people were talking about possible cabinet causalities yesterday, Mr Javid was not on the list.
But if you look at the overall picture of what has happened in recent months, given the briefings against Mr Javid, the resignation may not be disappointing to some inside No 10.
Rishi Sunak has been appointed as the new chancellor following Sajid Javid's resignation.
You may remember that back in August Sajid Javid's adviser Sonia Khan was sacked and escorted from Downing Street by police after her security clearance was withdrawn.
At the time it was reported that the chancellor "voiced his anger" to Boris Johnson over the sacking of one of his special advisers by No 10, the BBC has learned.
It came after she was summoned to a meeting with the prime minister's senior aide Dominic Cummings, about government leaks.
Today it is believed Mr Javid has resigned after being asked to get rid of the rest of his advisers.