I think it's stupid to assume that a decision regarding time complexity would never come up at their job. Where I work right now, and especially in Google (not where I work right now), it is important that one understands time and space complexity issues well. The data sizes are huge and optimization skills are highly valued.

Sure I can teach constant vs. linear time. But what incentive or reason do I have to spend time teaching these fundamental concepts when I can just hire an engineer who demonstrates the understanding of basic CS at the interview time itself?

Given two candidates with all things equal except that one demonstrates the understanding of CS fundamentals and other does not, why would I want to hire the second person and spend our time teaching him those concepts?