How about in job interviews? Obviously never on the actual job, but how about interviews? They ask all sorts of crazy crap. I suspect because they've got no idea what to ask.
My current work, the problem isn't the algorithms that make the thing run slowly, its because the people who wrote it don't know how to use Django efficiently. Lots of loops in the application making database calls each time (our main page is making over 1000 database calls). A bit more thought in the database design, knowing a bit more about how Django's ORM works and you could do all that work in the database in less than 10 calls and make it a lot faster. A couple of extra database indexes in the right places, and a bit of caching and it should run even faster.
Thats the sort of knowledge that is relevant to (most of) our jobs, not big-o.
I've spent a semester doing all sorts of silly algorithms, including * sort, so it's not like I couldn't handle them if it was ever required. The thing is, time to market and code consistency will almost always leave you using the standard libraries which came with your environment.
There are obviously a few jobs where it's relevant, but I'm into things like architecture, digitizations and business development, so I'll never work one of those jobs, and neither will 95% of you.