Carragher stated that Liverpool have lost their team balance, playing "basketball" rather than "football" and lacking defensive solidity.
He urged head coach Arne Slot to "earn his money" by fixing the team's problems, which Carragher believes have been evident since the start of the season.
The pundit specifically called for big-money signing Florian Wirtz to be dropped from the team due to his poor form since his £116m move.
Carragher suggested Liverpool should revert to the midfield three that secured them the Premier League title last season to regain confidence and defensive strength.