Not really, but not unseen either. When I got interviewed for a position as a Motion Graphic Designer, I got asked to pump out a heap of simple motion graphics in AE in an hour. The manager simply said he wanted to see how fast I was and how well I knew my way around the software. Needless to say, I got the job, but studio's are all about time management and so forth. The faster you can produce decent quality, the better. I would be more inclined to hire someone with very good knowledge who could work quickly and produce high quality work, as opposed to a slower person who produced high quality work. Time, especially in this industry, is money.
So, to anyone else who see's this, ensure you're prepared for things like this. I've seen it before, and it doesn't hurt to be prepared. It's not done everywhere, but it is done.