The four-time defending league champions have suffered five straight losses in all competitions before blowing a three-goal lead in just 14 Champions League minutes against Feyenoord on Tuesday night.
That capitulation came after they succumbed to a humbling 4-0 defeat against Tottenham Hotspur at the weekend.
Yet while City's recent run may prove cause for concern as they struggle to cope with the absence of Ballon D'Or winner Rodri, former manager Pearce - who also made 38 appearances for the club in his lone season in Manchester - isn't ready to write off his former side just yet.
"I think missing Rodri is a major problem for them," said Pearce.
"There was talk about it but they won the first few games after he was injured and everyone thought 'Hang on, maybe it's ok!
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