The Magpies fell to their second heavy loss at St James' Park in a row as braces from Jordan Henderson and Daniel Sturridge along with strikes from Daniel Agger and Fabio Borini sealed an emphatic win for Brendan Rodgers's side.
"It's a sick feeling. At this moment in time, it feels like a family member has died," Taylor told BBC Sport.
"In the dressing room, looking around, everyone was devastated and realised the situation we are in. We are devastated with it, it wasn't acceptable and we all hold our hands up."
Newcastle are 16th in the Premier League and are just five points clear of the relegation zone with three games to play this season.