Well, in theory yes. When determining whether a specific function can be inlined into its call site, V8 looks at the length of the function source code to try and guess whether it's worth it. Functions longer than 600 characters (including comments) cannot be inlined and therefore they will typically be slower.
Whether that makes any meaningful difference to your application performance really depends on the application. In most cases it won't.
You certainly don't need server-side minification.
This is probably one of those heuristics that works well enough on enough real world code, even though everyone knows it's suboptimal. I've heard that the turbofan compiler will remove this limitation but that's still very much work in progress.