Definitely not true. I'm a current Google employee, and one of my teammates (a senior staff engineer, no less) does NOT know what a unit test is, what an API is, what Borg is, or how MapReduce works. After suspecting this for a while, I asked him to try to explain some of these concepts, and he either had no answer or his answers were hilariously wrong.

(He did come from an acquisition, though, and doesn't write any code. He's more of a manager, despite not being on the manager track.)