Leeds are sitting just above the relegation zone and the board acted when they decided to sack Marsch last week.
The Whites have floundered in their search for a new manager and it seems they are closing in on appointing former Ajax boss Alfred Schreuder.
However, Taylor stressed that it would not have been a shock for many if they did not decide to sack the American.
He feels their situation is better than Southampton’s, who are rooted to the bottom of the Premier League, and while they were struggling defensively, the Whites were still playing decent football under Marsch.
The former defender said on BBC Radio 5 Live: “I don’t think they are in as dire a situation as Southampton are.
“They play better football and if Jesse Marsch was still in the job people wouldn’t argue with it too much.
“Yes they were conceding too many goals, but they were still good to watch, they were a high-energy team.
“They looked like they always had a chance and just struggled at the top end of the pitch.”
Marsch is in contention to become the next Southampton manager after Nathan Jones was sacked on Sunday.
