Lampard's side have been leaking goals at the back, conceding eight more than newly-promoted side Sheffield United.
"They do need tightening up, Chelsea, as a team defensively," Hoddle said on BT Sport.
“We saw them play against Valencia and it was like a schoolboy game, that game could have been 12-12. It's ridiculous.
“They are [entertaining to watch]. Going forward it's great and I'll tell you what, in world football who knows how to get a clean sheet? No one knows how to get a clean sheet anymore.
“But Chelsea certainly, Frank's got to look at that long term, to when to tuck the belt in, when to just say 'Look, let's play 5-10 minutes'."