No, it just limits the amount of RAM that Firefox (or whatever other application you launch with these parameters) will see.
A few Firefox tabs may crash occasionally as a side effect. And obviously if Firefox eats up all of the 8GB it’s allocated it may crash itself though usually it doesn’t and tabs will crash before the browser crashes.
Something I didn’t consider when answering earlier is that even if Firefox did have good RAM usage limiting built-in I probably still wouldn’t use it or recommend it, because one of Firefox’s biggest problems is that it leaks. And memory leaks will not be negated by Firefox’s built-in RAM limiter but they will be by systemd’s (or anything else you might be using instead) Firefox would still crash in the event of a leak but it’s still better than it taking gnome or other apps with it, or freezing your system entirely.