The Gunners have just 13 points from 10 matches in the English top-flight and the former midfielder believes problems are rife throughout the team
Roy Keane believes the Arsenal are being hindered by having inadequate players who are "too soft" after they were defeated 2-1 by Wolves at home.
Pedro Neto gave Wolves the lead 27 minutes into the clash in north London, only for Arsenal centre-back Gabriel Magalhaes to pull his side level shortly afterwards.
But Daniel Podence dealt the crucial blow shortly before half-time when he knocked past Bernd Leno, which proved to be enough to seal the three points for Nuno Espirito Santo's team.
While Gunners coach Mikel Arteta admitted it was a "really bad result" as his side suffered a fifth loss in 10 matches in the Premier League this season, he said his side had a "great reaction" in the second half and was pleased with the "desire" on display.
Keane, however, did not see as many positives from the home side's performance and he believes the Spanish manager should be more concerned with his team.
"I think a lot of the players aren't good enough, I think there's a softness there," the former Manchester United midfielder said on Sky Sports .
"A few weeks ago all the cheerleaders were out when they had a decent performance at United. They've had one point since then, lost the other two games.
"I think they look soft. They're probably lacking a bit of confidence. I didn’t see that real fight that the manager was talking about. I didn’t see that desire and determination to get a result.
“You can have an off-night of course, but you still find a way to get a result.
“At this moment in time I don’t see it with this group of players. I think they look a bit soft.”
Arsenal's next match is against Rapid Wien in the Europa League and return to domestic action with a clash with fierce rivals Tottenham, who are top of the table.
Keane believes it may be the right time to come up against Jose Mourinho's team as expectations will be low.
"They all seem big at the moment, don't they? Maybe that might be the best game for them to have next week, a derby with no supporters there," he said.
"Going away, maybe less pressure than at home. They'll have enough to stay up, I think. They'll be strong enough to stay in the division."