Sony Pictures Entertainment Co-Chairman Amy Pascal has announced she will be stepping down from her position in the company to head a new production studio.

Pascal's resignation comes after tension between various Sony executives and actors escalated following the infamous hacking scandal that leaked private emails showing Soney executives calling out several public figures.

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Pascal claims the move has been in the works for a few years. The production company will feature movies, TV shows and plays. Sony will fund Pascal's first four years of production, and also rent Sony's studio at Culver City.

"I have spent almost my entire professional life at Sony Pictures and I am energized to be starting this new chapter based at the company I call home," said Pascal. "As the slate for the next two years has come together, it felt like the right time to transition into this new role."

Insiders say Pascal was offered the chance to stay at the company, despite leaked emails showing executives were thinking about making her resign from the position.

"The studio's legacy is due in large part to Amy's passion for storytelling and love of this industry," Sony Pictures CEO Michael Lynton said in a statement. "In recent months, SPE faced some unprecedented challenges, and I am grateful for Amy's resilience and grace during this period."

Pascal was hit with allegation of racism after asking "What would Obama think of DJANGO" and what Obama would think of other African-American focused films, leading to her and other executives apologizing.

The last big movie Pascal pushed was "The Interview", making $40 million in online sales only due to cinemas banning the movie. The hacking group 'Guardians of Peace' claimed 9/11 scale attack if cinemas showed the movie.

Since then, North Korea has been accused of the Sony Pictures hack. Reports say the U.S. government has been implementing surveillance inside North Korea's servers since 2012, and knew that North Korea had acquired a hacking team to attack Sony Pictures.

TagsSony Pictures Entertainment, Amy Pascal, sony, hacking, The Interview, President Obama