The adoption of generative Artificial Intelligence (GAI) in organizational settings calls into question workers' roles, and relatedly, the implications for their long-term skill development and domain expertise. In our qualitative study in the software engineering domain, we build on the theoretical lenses of occupational identity andself-determination theory to understand how and whysoftware engineers make sense of GAI for their work. We find that engineers' sense-making is contingent on domain expertise, as juniors and seniors felt their needs for competence, autonomy, and relatedness to be differently impacted by GAI. We shed light on the importance of the individual's role in preserving tacit domain knowledge as engineers engaged in sense-making that protected their occupational identity. We illustrate how organizations play an active role in shaping workers' sense-making process and propose design guidelines on how organizations and system designers can facilitate the impact of technological change on workers' occupational identity.