"You have to close the stores that don't work, and [CEO Doug] McMillon continues to take tough actions. I appreciate what he's doing," Cramer said on "Squawk on the Street." "This is impressive that he's willing to bite the bullet on stores that should be closed."
The retail giant said Friday it will shut down 269 stores worldwide, including 154 in the U.S., impacting 16,000 employees.
"Anything that is put out today will have a negative spin to it, but the fact is that this is the kind of change you wanted to see," Cramer said. "The idea of cutting underperforming stores is not in Wal-Mart's DNA. Every store performs in the old Wal-Mart. This is a very realistic approach."
The company's stock fell about 1.5 percent in morning trading.
Wal-Mart shares in 2016
DISCLOSURE: Cramer's trust did not own shares of Wal-Mart when this article was published.