That seems like typical media hysteria to get views. Per a much more reasonable article (https://www.xda-developers.com/sony-xperia-xz4-compact-cance...), the entirety of available evidence is this statement given during an interview:

"We stuck with Compact for a very long time, because of the ease of use. There’s always room for different sizes, but people want a lot more surface area for their content now."

That doesn't sound like a definite statement to me. A more appropriate headline would be "Future of Sony Compact series in question" or something along those lines. That just wouldn't sound as exciting though.