Cramer: Target cuts are the right moves

Target CEO Brian Cornell is making the right decisions, CNBC's Jim Cramer said Wednesday, a day after the retailer announced a $2 billion cost-reduction plan, including thousands of job cuts.

"I like what I'm hearing from Cornell," Cramer said on "Squawk on the Street." "I thought he was very strong."

The retailer said several thousand jobs would be cut over two years as part of the plan.

The company's stock was down slightly Wednesday morning. (Click here for the latest price.)

Read MoreTarget to cut jobs as part of $2B cost-savings plan

"There's 13,000 employees at [Target's] headquarters, which is 12,975 more than what Warren Buffett has at his headquarters," Cramer said, adding that Cornell is leaning toward placing Target stores closer to college campuses. "I've been talking to him about the notion to have Target next to every single university. The first thing you do [upon arrival at a university] ... is go to [the nearest] Target," Cramer said.

Cramer added that Cornell is also taking feedback from everyone he can in order to "get it right." "He is listening to people, and that is not the Target way. I like what I'm hearing from Cornell," he said.

DISCLOSURE: Cramer's charitable trust owned Target stock at the time of this publication.