Liverpool suffered a stunning defeat against Fulham on Sunday to compound their horrific season so far.
The Premier League champions have now lost six league games on the bounce in the Premier League, and are at risk of falling into the bottom half of the table.
Last season at this point, they'd lost just once and were running away with the league title having amassed 79 points.
Now, however, they have just 43 points - fewer even than David Moyes' Manchester United side collected by this point in their title defence.
And Gary Neville believes the team's performance against Fulham proves they aren't just going through a blip, but rather are collapsing.
Speaking to Sky Sports, Neville provided a detailed analysis of the team's decline and explained why they are in freefall.
He said: "How bad are Liverpool? They're really bad… When I say that, I mean really bad in sight of how good they've been.
"We all like different styles of football and for me, if you said put Manchester City over the last three years against Liverpool, I'm taking Liverpool all day long.
"Their speed of play, the aggression in their play, their style of play, I love it. I love the front three, I love the way the back four played, their goalkeeper is outstanding.
"This Man City team is a fantastic team, don't get me wrong, and it pains me to say that they are both the biggest rivals for Manchester United. Liverpool have been absolutely outstanding and reached unbelievable heights and I said a few weeks ago on this podcast that it was acceptable that they would have a little bit of a dip and I would go easy on them.
"We could never do it in the fourth year at Man Utd, there was always that dip, but this isn't a dip - this is a collapse. They're woeful at the moment in every single way.
"I don't know what it is. I'm sure there's no panic there, I'm sure Jurgen Klopp has got the experience and quality and he will know that he needs to get his team to the finish. He needs to get this season over and limp over the line, even wheelbarrow them over the line if he has to.
"When he gets them to the end of the season, he's going to have to regroup, but then you think about the fact there's a European Championships and then the season will start again pretty quickly. His players aren't going to get much of a rest."
Neville went on to offer up advice for how the deflated champions can recover from this downturn in form, amid suggestions Klopp will oversee a squad overhaul this summer.
He explained that the Liverpool boss has to remind his team of what they did to make them champions of Europe and England in consecutive years.
Neville continued: "They've to regroup and make sure the damage that is being done at this moment in time in terms of the confidence isn't long-standing.
"The fact that they won the Premier League title last season and got to a Champions League final and won the year before, also losing it the year before that, it's still the same group of players.
"In football, I never think it's as bad as it looks or as good as it looks... Liverpool players will be punishing themselves and you can't do what they've done in the last few years without being great professionals and great players.
"You don't get to two Champions League finals and do what they've done with City, wrestling them right until the end and then winning the title last season, without being a fantastic team.
"But what's happening at the moment is bizarre... and it feels like they've lost absolutely everything that they had. Their speed of play, their confidence, the way in which Anfield was such a difficult place to go, the determination, the resilience to win when they weren't playing well - there isn't anything there at the moment.
"I don't how they get that back other than to get to the end of the season. They're going to struggle to get into the top four - they still could but they're really going to struggle - because the mood in the dressing room at the moment must be really low.
"The confidence must be drained out of them and I have no answer. It goes beyond what would be a fourth year dip, this is a real collapse.
