Ole Gunnar Solskjaer’s men could have moved to within three points of Chelsea in fourth with a win, but first half goal from Chris wood and a stunning effort from Jay Rodriguez obliterated the hosts.
Burnley have moved seven points clear off the relegation zone with their first win at Old Trafford since 1962.
Ferdinand, who is currently working as a pundit was unimpressed with the Red Devils’ toothless performance which forced some of the home fans to leave prior to the final whistle.
"84th minute I saw people get up and go,” the former Manchester United man said on BT Sports.
“That is unheard of at this stadium. Seeing people leave with disdain on their face. It is an embarrassment. The downward spiral in seven years has been remarkable.”
"I have played with Ole, he is an ex-team-mate of mine but the results have not been good enough.”
“He has had some key players get injured but with the big amount of money spent on this squad you would expect more in reserve."
Former Liverpool forward Peter Crouch, who was also on the same show said the current Manchester United squad are the worst in 30 years.
"This squad has to be the worst squad in the last 30 years. Look at it tonight, look at the options off the bench, it is miles off it. It is a sad state of affairs,” he said.
"There is no ethos. I don't know what a Manchester United player is anymore. Most of the players that Manchester United have bought in the last five years have gone backwards."
He added: "The most damning stat is that they have a squad that cost £100m more than Liverpool. Who is buying the players? They will probably go out now and spend £30-40m on one player.”