Liz Truss was expected to take his position, leaving her position as secretary of state for international trade.
Several other cabinet members left or have been reassigned.
Johnson also said Justice Secretary Robert Buckland, Housing Secretary Robert Jenrick and Education Secretary Gavin Williamson were no longer in their positions.
Johnson’s promise to tackle regional inequality swept him to power in 2019 with the biggest Conservative Party majority since Margaret Thatcher.
COVID-19 derailed that agenda.
“We know the public also want us to deliver on their priorities, and that’s why the prime minister wants to ensure we have the right team in place for that,” Johnson’s spokesman told reporters.
Many Conservative Party lawmakers said the moves were long overdue, with one anonymously telling Reuters that the cabinet was “appallingly encrusted with barnacles.”
Raab recently faced heavy criticism for remaining on vacation in Greece as the Taliban took over Afghanistan.
Some information in this report comes from The Associated Press and Reuters.