Somewhat/maybe.
Cellulite is, essentially, fat being pressed between the connective tissue of your skin. Because of that, as you lose fat, you may see a reduction.
The tendency to form cellulite, though, is for a large part genetic, so you may just be predisposed to it. Some people get it, some don't, and to every degree in between. And since your body requires you to have some fat to survive (for women, a good target is 18-25% of your weight from fat), you can't guarantee it'll go away after weight loss...your remaining, necessary fat might just show up as cellulite.
Almost everyone has some degree of cellulite, and studies have shown that men literally do not notice it...at all...on women, if that helps.
Flabby arms, though...that's a different issue. Are you doing any strength training? Lifting weights and building arm muscle can help tighten up the whole arm, so you get less floppiness.
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