Cramer's comment came after Immelt said at the Electrical Products Group Conference last week that the company's 2018 EPS forecast of $2 is at the high end of expectations "where markets are today," and hitting goals will require additional cost contingencies.
Immelt has been under pressure from shareholders to improve GE's performance as its stock revisits lows. The company plans to cut $2 billion in costs over two years.
"The cash flow must be positive or Jeff Immelt is going to go, OK. ... Of which is a low bar because they said it was going to be cash flow positive," Cramer said on "Squawk on the Street."
Cramer questioned if GE, like the Philadelphia Phillies major league baseball team, has time to rebuild.
"GE is the worst industrial stock that I'm following in terms of what should happen, and the Phillies are the worst baseball team," Cramer said.
"That board seems very happy," he said. "The fact that the cash flow is negative is why we're talking about this, OK. I deal with the CEOs of the next five largest industrials ... let's just say people were pretty aghast."
CNBC has reached out to GE for comment.
— Reuters contributed to this report.
Disclosure: Jim Cramer's charitable trust owns shares of GE.