This follows the Gunners’ shock lead from the Europa League in the round of 32.
Arsenal won 1-0 at Olympiacos and were favourites to qualify, but lost 2-1 to the Greek side in the reverse fixture.
Arteta is expected to make major changes to his squad ahead of his first full season in charge.
Groves admits it won’t be easy to get rid of almost an entire lineup of players, but feels it would be the best decision.
“He needs to get rid of players. I thought it would be five or six, but I think you’re looking up to about nine players. [But] It is going to be impossible to get rid of them all in one go.
“This isn’t about talent, it’s not that they are not good players – David Luiz, (Shkrodan) Mustafi, Sokratis, (Dani) Ceballos is going to go anyway as he is on loan, Ozil, (Granit) Xhaka, (Calum) Chambers, (Mohamed) Elneny and Henrikh Mkhitaryan.
“Mkhitaryan and Elneny are out on loan at this point anyway,” he told talkSPORT.
Arsenal are currently in ninth place in the Premier League, seven points off fourth-place Chelsea.