"I don't like job cuts, don't get me wrong ... but I think Twitter was bloated," Cramer told "Squawk on the Street." "This is the first time Twitter recognizes that you can't just be part of some sort of club where it doesn't matter how you do."
The social media company announced Tuesday it was cutting up to about 8 percent of its global workforce.
"Twitter is now showing that it was previously run haphazardly and now it's being run laser-focused," Cramer said. "I would not rule out this stock going higher from here."
Shares of Twitter were up nearly 5 percent midmorning Tuesday.
Disclosure: Cramer's trust owned Twitter stock when this article was published.