The answer is Yes. Think of it as a food chain. When one part is weak, all the other parts suffer as well.
A year ago Matt Cutts suggested hubpages to break up their site into “subdomains,”
See - [webmasterworld.com...]
They did it, and some other content farms followed this suggestion too.
It worked for several months and they all made a partial recovery, however in one of the Panda rounds they were hit hard again (and again, in every Panda iteration since).
The reason it didn’t work for a long time is because the sub-domains still have links to other internal pages of their site.