How do I use Masks and Layers to get a “cut-out” effect?

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I’ve attempted to use the Mask feature and reorder the layers to no avail.

Q: How do I configure these layers so that layerInitials is transparent and always matches whatever background it’s placed on?

Please note that I plan to export as SVG so that it can be used on webpages.

Screen Shot 2022-01-16 at 12.18.10 PM
Screen Shot 2022-01-16 at 12.18.10 PM2066×1516 229 KB

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