The Rossoneri have won only three of their last 11 matches in all competitions and currently lie 12th in Serie A, with Seedorf having taken the reins from Massimiliano Allegri in January.
Gullit, though, says he expected his former team to sink to this level as they have been constantly downgrading the squad for years and feels his former team-mate Seedorf must be given at least a year before he can be judged in his maiden coaching job.
"I'm not surprised," the ex-Netherlands international told La Gazzetta dello Sport.
"They started selling the biggest players five years ago and the objective was to keep budgets in order, a method that I agree with to an extent, but because of that you cannot have a winning team.
"In Italy it is always that if you don’t win, you're soon to be scrapped. But Seedorf couldn’t change anything, starting with the players.
"Honestly, to assess his impact will take at least a year. It is wrong to think that replacing him will solve everything."
Gullit then turned his attention to club CEO Adriano Galliani and president Silvio Berlusconi the former of whom he thinks is going nowhere while casting doubt on the latter's commitment to the cause.
"To me, [Galliani] is untouchable. He gave his life for Milan and his experience is important. I consider him unique and irreplaceable.
"The president can't be there forever. He was the biggest winner, achieving incredible results, but it is clear that they don't have money."