Yes, I do think toxic people can affect depression, or any other mood issue.

The rub lies in how do you identify someone as toxic, an unfixable situation really?

I just repaired some friendships while coming out of a horrible very severe depression. They were great. Basically they said "welcome back" and I can tell they care about me very much. They are supporting me when I need them.

The toxic people in my life unfortunately include my parents. I do not want to cut them out of my life. So I have relegated them to the "check in once in a while, fair weather friend" role. For now. Maybe with therapy I can fix that but I have decided to work on myself for now.

Try repairing the friendship. The friend's reaction may help you decide. But the decision is ultimately yours.