As always in these questions, the answer to this is, "It depends". However, without trying to get into too much detail if you've got the manpower I'd cut down jungle, irrigate that space, and mine the forests. But if you've got LOTS of forests, then yes you may need to cut those down also somewhat.
You don't lose resources by cutting down jungle or forests. Only potential shields. For example, if you've got a lot of jungle and you're keeping it because you know that rubber only appears in jungle, then don't worry about cutting it down. If there was ever jungle on that square, the computer will potentially put rubber on that square, regardless of whether the jungle still exists or not.
good luck!