While it can store bytes here and bytes, no, it does not matter for iota, and you will not see real memory or performance savings using short variable names.
If you are really concerned about memory usage and performance, please comment on your code. xdebug and xhprof are great tools for getting this done. You can even install xhprof on your production machines. Once you have truly measured your performance and memory usage, you can tune the real problems in your code.
Also, make sure you use 5.4 if you can. It introduces some huge improvements in both performance and memory usage.
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