Amy Pascal, who was thrust into the spotlight during the Sony Pictures hacking debacle this past fall, is stepping down from her position as co-chairman.

Sources told Deadline that the change was expected this morning and Sony later confirmed the news in a statement.

Pascal held the top position at the studio as co-chairman and chairman of the Motion Picture Group. She had been at Sony since 1988 and was one of the longest tenured executives in the business.

While she’s leaving that post, she will star on for a new venture that begins in May. Her current contract was set to expire in March.

“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,” Pascal said in a statement to The Hollywood Reporter. “I have always wanted to be a producer. (Sony Entertainment CEO) Michael (Lynton) and I have been talking about this transition for quite some time, and I am grateful to him for giving me the opportunity to pursue my long-held dream and for providing unparalleled support. As the slate for the next two years has come together, it felt like the right time to transition into this new role. I am so grateful to my team, some of whom I have worked with for the last 20 years and others who have joined more recently. I am leaving the studio in great hands. I am so proud of what we have all done together and I look forward to a whole lot more.”

As part of her new venture, she will continue to produce films herself and will have her production company based at Sony in Culver City. Sony will have all distribution rights to her new projects under a four-year deal.

Pascal was at the center of one of Hollywood’s biggest scandals after a group of hackers attacked the studio, leaking thousands of private emails to the public. The White House officially blamed North Korea for the attack, suggesting it was in retaliation for the Seth Rogen/James Franco comedy The Interview.

Pascal’s emails revealed the inner-working of Hollywood, showing how dirty the business can get sometimes. Pascal and producer Scott Rudin were even forced to apologize for racially insensitive remarks they made in conversations they thought were private.

Despite the recent events tarnishing her record, Pascal will still be recognized for a stellar resume that includes several hits for the studio. While 2013 was filled with expensive flops, she also oversaw blockbusters and brought the studio into the James Bond business by working with MGM. In recent years, she’s also helped the studio make shifts towards prestige projects like Moneyball, The Social Network and Zero Dark Thirty.

“Amy has had a truly extraordinary career,” Sony Corp CEO Kazuo Hirai said. “In her years at Sony Pictures, Amy worked with some of the best talent in the film industry to create many of our studio’s most beloved and successful films. I want to thank her for her years of dedication and I am pleased that she will continue to work closely with SPE in her new venture.”

image of SPE co-chairman Amy Pascal courtesy of Jennifer Graylock/INFphoto.com