The English champions were at sixes and sevens at times during their 3-0 loss to the Red Devils on Sunday at the King Power Stadium, and haven't won in the league since a 1-0 victory over West Ham United in December.
City find themselves in 16th place and are just one point outside of the relegation places. The campaign has been a far cry away from when they were challenging for the title at the same time last season.
As such, Schmeichel has expressed concerns about the club's current situation. He told reporters: "Let's not talk about last season. It's gone. There are a lot of factors that go into it but this season has not been good right from the start.
"We are a group of players low on confidence but not low on fight. It is not a comfortable situation. It has been terrible, embarrassing. It is time for each one of us – from the top to the bottom of this club – to stand up and be counted. If we don't, we will be relegated."