The Glasgow giants suffered an embarrassing night in Europe on Thursday night when they lost 2-1 to Aris Limassol in Cyprus.
The Cypriot side are the underdogs of Group C and Rangers were widely expected to beat them after they managed to win against Real Betis at home in the opening game.
However, they never looked like winning in Cyprus and Limassol came out as deserving winners on the night.
Thompson is already feeling sympathetic towards any manager who will be coming in at Rangers in the coming days.
He stressed that this side Rangers do not look like winning a game and are completely short of confidence or any belief at the moment.
The former Rangers striker said on BBC Radio Scotland: “For any potential manager coming in, it is going to be very difficult to try and get something out of this team at this minute in time.
“They don’t look like a side that are going to be winning games.
“They look like a side that are fragile, lacking in confidence and lack in creativity in forward areas.”
Rangers are expected to make a decision over their next manager some time next week.
