The Orioles designated Handley for assignment Thursday, Roch Kubatko of MASNSports.com reports.
Handley will lose his place on the 40-man roster in order to make room for Pete Alonso, whose signing became official Thursday. Handley went 3-for-41 (.073) in the majors this past season but slashed a more respectable .258/.373/.367 over 154 plate appearances at Triple-A Norfolk.