Manager Felix Magath branded Schalke's 3-1 home defeat to Borussia Dortmund in the Westphalian derby his "worst day" in charge of the club.
Dortmund dominated from start to finish and went three up through Shinji Kagawa's brace and Robert Lewandowski's effort.
Klaas Jan Huntelaar's last-minute consolation was more than Schalke deserved as they slipped to a fourth straight loss.
"This is my worst day here at Schalke," said Magath.
"I have never had four defeats in a row at the start of a season."
Rather than challenging at the top of the table, like many expected when the likes of Raul, Huntelaar and Christoph Metzelder were signed this summer, Schalke are bottom of the pile and already 12 points off the pace.
"I have never seen a team like this," admitted Magath. "The troops are totally insecure.
"These defeats have left their mark."
Even Dortmund coach Jurgen Klopp was shocked by how poor his side's opponents were.
"Even I don't know why Schalke are in such a state," he said.
Klopp was full of praise for his own side's display, though.
He added: "We played a great game from start to finish and totally deserved this win.
"This is what football is all about."
