Yes, breadcrumbs can positively impact SEO, but they are not mandatory.

Why breadcrumbs help SEO:

They enhance internal linking structure, helping Google crawl your site better.

They often appear in Google search results as navigational links (known as breadcrumb-rich snippets).

They improve user experience and site hierarchy, especially for large or complex websites.

But removing them does not cause a penalty. It's just a missed opportunity, not a red flag.