Poor management and unsuited drivers are at the core of Williams's problems, according to Jacques Villeneuve.
The Canadian in 1997 became the British team's last world champion, but Williams is now struggling with F1's slowest car.
"The team is dead. There is no management," Villeneuve told Russia's Sport-Express.
"They had the chance to make a good choice, but they put Claire Williams in charge rather than [brother] Jonathan. It was a big mistake.
"When things are like this, you need to look at the top of the pyramid. And they simply don't understand what to do. I just don't see how they will get out of it."
Villeneuve added that the problem is compounded by Williams's drivers, 19-year-old Lance Stroll and rookie Sergey Sirotkin.
"Sergey should be glad he is in Formula 1, because if you look at what he did before, there is no reason he should be here," said the French Canadian.
"So if he drives for the worst team, he should be pleased. The problem is that his teammate also has no experience, so he has no one to learn from.
"If Felipe Massa was still there, he may have learned something, but with Lance and his family in the team? All that political mess? There is not much that is positive."
Williams remains at the bottom of the 2018 constructors' championship with four points.
