timeout is not meant as a request timeout. It's meant as a liveness check for workers. For sync workers, this functions as a request timeout because the worker cannot do anything other than process the request. The asynchronous workers heartbeat even while they are handling long running requests, so unless the worker blocks/freezes it won't be killed.
Gunicorn has a function called worker_abort (see gunicorn docs below).
def worker_abort(worker):
    worker.log.info("worker received abort signal")
    import threading, sys, traceback
    id2name = dict([(th.ident, th.name) for th in threading.enumerate()])
    code = []
    for threadId, stack in sys._current_frames().items():
        code.append("\n# Thread: %s(%d)" % (id2name.get(threadId,""), threadId))
        stack = traceback.extract_stack(stack)
        for filename, lineno, name, line in stack:
            code.append('File: "%s", line %d, in %s' % (filename, lineno, name))
            if line:
                code.append("  %s" % (line.strip()))
    worker.log.debug("\n".join(code))
Called when a worker received the SIGABRT signal. This call generally happens on timeout. The callable needs to accept one instance variable for the initialised Worker.
Sources:
http://docs.gunicorn.org/en/stable/settings.html, https://github.com/benoitc/gunicorn/issues/1493, https://github.com/benoitc/gunicorn/blob/master/examples/example_config.py